Bank of America debt insurance costs hit record high

NEW YORK Tue Aug 23, 2011 9:58am EDT

NEW YORK Aug 23 (Reuters) - The cost to insure Bank of America's (BAC.N) debt in the credit default swap market surged to a record high on Tuesday as concerns over the U.S. bank's mortgage liabilities accelerated.

Credit default swap insurance on the bank's unsecured debt jumped 64 basis points to 435 basis points, meaning it would cost $435,000 per year for five years to insure $10 million in bonds, according to Markit.

The bank's CDS previously traded as high as 386 basis points in March 2009, Markit data show. (Reporting by Karen Brettell; Editing by Theodore d'Afflisio)