U.S. Company Credit Risk Surges

Cost to protect debt of U.S. companies hits highest level in more than a year.

The cost to protect the debt of U.S. companies surged to the highest level in more than a year on concern that the European sovereign crisis is worsening.

The Markit CDX North America Investment Grade Index of credit-default swaps, which investors use to hedge against losses on corporate debt or to speculate on creditworthiness, increased 5.8 basis points to a mid-price of 115.8 basis points as of 5:09 p.m. in New York, according to index administrator Markit Group Ltd. That’s the highest level since July 2010.

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