Please, for the love of god, tell me you typed that in yourself, and did not cut and paste from Bloomberg.
"may loose"? Really? On Tue, Mar 17, 2009 at 12:42 PM, Gruss Gott <[email protected]> wrote: > > March 17 (Bloomberg) -- The cost of protecting European corporate > bonds from default increased on concern rising credit card > delinquencies at American Express Co. reflect a deepening credit > crisis, according to traders of credit-default swaps. > > Contracts on the Markit iTraxx Crossover Index of 50 companies with > mostly high-risk, high-yield credit ratings increased 21 basis points > to 1,091, according to JPMorgan Chase & Co. prices at 11:23 a.m. in > London. The index fell from a record 1,173 basis points on March 5 as > European stocks staged a five-day rally. > > With the unemployment rate in the U.S. headed toward 10%, credit card > companies may loose as much as $75 billion in 2009, according to a BNP > Paribas SA report today. American Express Co., the biggest credit-card > company by purchases, yesterday reported a rise in 30-day delinquency > rates to 5.3 percent and Chief Executive Officer Kenneth Chenault said > the financial environment was among the harshest we have seen in > decades. > > Climbing credit card delinquency rates in the U.S. have stopped the > rally dead in its tracks, said Jeroen van den Broek, head of credit > strategy at ING Groep NV in Amsterdam. This identifies the lack of > spending power present in the U.S. consumer. > > Credit-default swaps, contracts conceived to protect bondholders > against default, pay the buyer face value in exchange for the > underlying securities or the cash equivalent should a company fail to > adhere to its debt agreements. An increase signals a deterioration in > the perception of credit quality. > > A basis point on a credit-default swap contract protecting 10 million > euros ($13 million) of debt from default for five years is equivalent > to 1,000 euros a > > ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Adobe® ColdFusion® 8 software 8 is the most important and dramatic release to date Get the Free Trial http://ad.doubleclick.net/clk;207172674;29440083;f Archive: http://www.houseoffusion.com/groups/cf-community/message.cfm/messageid:292051 Subscription: http://www.houseoffusion.com/groups/cf-community/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=89.70.5
