Bond Issue Leads to CDS Decline

Credit default swaps in U.S. fall as Verizon issues record $49 billion in bonds.

A gauge of U.S. company credit risk declined as Verizon Communications Inc. completed a record corporate-bond offering.

The Markit CDX North American Investment Grade Index, a credit-default swaps benchmark that investors use to hedge against losses or to speculate on creditworthiness, fell 1.8 basis points to a mid-price of 76.2 basis points as of 4:17 p.m. in New York, according to prices compiled by Bloomberg. The measure typically falls as investor confidence improves and climbs as it deteriorates.

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