Financial Credit Risk Two-Week Low

ECB cash and U.S. growth contribute to optimistic drop in risk.

The cost of insuring against default on financial debt fell to the lowest in two weeks amid optimism the European Central Bank’s cash injection will ease bank stress and after data signaled the U.S. economy is strengthening.

The Markit iTraxx Financial Index of credit-default swaps on the senior debt of 25 European banks and insurers fell for a fourth day, dropping 10.5 basis points to 280, according to JPMorgan Chase & Co. at 2 p.m. in London. A decline signals improvement in perceptions of credit quality.

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