Sunday, August 5, 2007

Asia-Pacific Corporate Bond Risk Increases on Subprime, Default Swaps Show

(Bloomberg) -- The risk of owning corporate bonds in
the Asia-Pacific region rose on concerns that losses tied to the
U.S. subprime mortgage market will widen.

The cost of default protection, measured by credit-default
swaps, increased in Australia and Japan, approaching the highest
in more than three years. Similar contracts tied to U.S. and
European corporate bonds rose on Aug. 3 after Bear Stearns Cos.,
the manager of two hedge funds that collapsed last month, had
its debt-rating outlook cut to negative by Standard & Poor's.


Read more at Bloomberg Bonds News

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