Credit Risk Surges as Subprime Woes Curb Investors' Appetite for Debt

(Bloomberg) -- The perceived risk of owning bank
loans, corporate bonds and securities based on the riskiest home
mortgages surged as worries about accelerating subprime losses
curbed credit investors' appetites.

Corporate bond risk rose to a two-year high in the U.S. and
Europe, according to credit-default swap indexes that allow
investors to speculate on the ability of companies to repay
their debt or hedge against the risk they won't. Indexes tied to
the risk of owning high-yield, high-risk loans fell to records,
suggesting demand is deteriorating for leveraged-buyout debt.
Indexes of credit-default swaps on subprime mortgage bonds also
plummeted to new lows.


Read more at Bloomberg Bonds News

European Stocks Fall, Paced by Volvo, SKF, BAE Systems; Vodafone Gains

(Bloomberg) -- European stocks headed for the longest
losing streak in three months, paced by industrial companies
after brokerages downgraded shares of Volvo AB and SKF AB.

Indexes extended declines on reports North Korea test fired
several short-range missiles into the Yellow Sea.


Read more at Bloomberg Stocks News

U.S. Stocks Rise, S&P 500 Hits Record; Wal-Mart, Dow Jones Shares Advance

(Bloomberg) -- U.S. stocks advanced on government
reports that showed an improving economic outlook, crowning the
week with America's equity benchmarks at record levels.

Indexes of commodities, energy, consumer and industrial
shares touched all-time highs after companies hired at almost
twice the pace in May and inflation climbed less than economists
forecast. Wal-Mart Stores Inc., the world's biggest retailer,
rose the most in seven months after saying it will buy back as
much as $15 billion in stock. Dow Jones & Co. shares climbed to
a six-year high on speculation Rupert Murdoch may raise his
takeover bid.


Read more at Bloomberg Stocks News