WaMu debt protection costs hit record: Phoenix Partners

NEW YORK (Reuters) - The cost to insure the debt of Washington Mutual Inc (WM.N) hit a new record on Monday, more than reversing gains made in early morning trading, after the U.S. savings and loan ousted its chief executive and was put under special regulatory supervision.

WaMu's credit default swaps jumped to 28 percent on an upfront basis, meaning it costs $2.8 million to insure $10 million in debt for five years, in addition to annual payments of 500 basis points, or $500,000, according to broker Phoenix Partners Group.

The swaps traded at 26.5 percent upfront on Friday, and fell to 23.5 percent upfront on Monday morning, according to Phoenix.

(Reporting by Karen Brettell; Editing by Jonathan Oatis)