Cost of Insuring UK Corporate Debt Soars

January 22, 2008
Cost of Insuring UK Corporate Debt Soars

The cost of protecting corporate debt against default surged in Europe yesterday as fears intensified over the fate of global bond insurers and the $2,400bn (€1,662bn) of debt they guarantee.

The credit market was in its blackest mood since the height of the summer's subprime panic after Ambac, one of the biggest bond insurers, or so-called monolines, was downgraded by Fitch Ratings on Friday.