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Cost of insuring debt of Italy and Spain soars

CDS hit highest price in two weeks on fears that the two eurozone countries might require financial support from the European Union

The cost of insuring Italy and Spain’s sovereign debt against default using credit default swaps rose to its highest point in two weeks on Wednesday, as investors remained wary about the debt crisis in the peripheral eurozone bond markets.

CDS contracts for Spanish five-year government bonds were trading at 395 basis points early on Thursday, up from 384 on July 18, data compiled by Markit shows.

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