U.S. Credit Swaps Surge

Cost of protecting corporate bonds in U.S. spurred by debt crisis in Europe.

The cost of protecting corporate bonds from default in the U.S. rose by the most since March 21 on signs Europe’s sovereign debt crisis is worsening.

The Markit CDX North America Investment Grade Index, which investors use to hedge against losses on corporate debt or to speculate on creditworthiness, increased 2 basis points to a mid-price of 91.8 basis points as of 4:41 p.m. in New York, according to index administrator Markit Group Ltd.

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