Wednesday, July 11, 2007

LBO Credit Quality Declines to Nine-Month Low in Europe, Derivatives Show

(Bloomberg) -- Loans used to finance leveraged
buyouts are the riskiest in at least nine months on speculation
that losses on subprime mortgage securities will spread to other
markets, according to traders of credit-default swaps.

The iTraxx LevX Index of credit-default swaps on loans to
35 European companies fell as much as 1 percent to the lowest
since the index started last October, according to Deutsche Bank
AG prices. The LCDX index of loans to 100 U.S. companies dropped
as much as 0.57 percent to 96, Phoenix Partners Group in New
York said.


Read more at Bloomberg Bonds News

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