(Bloomberg) -- The merger between Abitibi-
Consolidated Inc. and Bowater Inc., North America's biggest
newsprint makers, may not improve their creditworthiness,
according to traders in the credit-default swaps market.
Credit-default swaps based on $10 million of Abitibi bonds
have surged $234,000 in the past three months to $540,300,
higher than before the merger was announced in January,
according to CMA Datavision prices. Contracts on Bowater jumped
$188,000 to $435,000 in the same period to the most in at least
five years. The rise in price indicates deterioration in the
perception of credit quality.
Read more at Bloomberg Bonds News
Consolidated Inc. and Bowater Inc., North America's biggest
newsprint makers, may not improve their creditworthiness,
according to traders in the credit-default swaps market.
Credit-default swaps based on $10 million of Abitibi bonds
have surged $234,000 in the past three months to $540,300,
higher than before the merger was announced in January,
according to CMA Datavision prices. Contracts on Bowater jumped
$188,000 to $435,000 in the same period to the most in at least
five years. The rise in price indicates deterioration in the
perception of credit quality.
Read more at Bloomberg Bonds News
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