Excerpt from: Bonds and Interest Rates CFDs and Spread Bets
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| April 12, 2007 | | Spread bets and CFDs on European corporate bonds | Corporate debt in Europe is a little more risky. This means that the gains offered by European corporate bonds could be quite high -- or the losses could be rather large. Spread betting and contracts for differences should consider this information from Bloomberg:
Contracts based on 10 million euros ($13 million) of debt
included in the iTraxx Crossover Series 7 Index of 50 European
companies rose 3,000 euros to 214,500 euros at 7:27 a.m. in
London, according to Deutsche Bank AG.
Credit-default swaps are financial instruments based on
bonds or loans that are used to speculate on a company's ability
to repay debt. An increase indicates deteriorating perceptions
of credit quality. | | |
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