Cost of insuring corporate and sovereign debt rises in Europe

08/17/2011 | Bloomberg

Credit default swaps on corporate and sovereign debt in Europe are indicating an increase in risks as the economy slows. "You're seeing an adjustment here -- an across-the-board widening in spreads which indicates weaker economic-growth prospects that results in weaker earnings prospects," said Maureen Schuller, an analyst at ING Groep. "If you have also growth in Germany slowing, that is definitely not a positive for credit spreads."

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