FACTBOX-U.S. loses favor to blue chips in derivatives mkt

June 8 (Reuters) - U.S. treasuries, historically considered
the ultimate safe-haven investment, have been losing favor to
brand-name U.S. companies in the credit default swaps market.

Credit default swaps, which are used to insure debt against
default and place bets on the likelihood of default, now cost
more for the U.S. government than for a number of U.S.
companies, according to data from CMA DataVision. Higher credit
default swap costs typically reflect perceptions of greater
default risk.

While a default on U.S. government debt is highly unlikely,
investors are growing concerned that rising budget deficits and
debt issuance may make treasuries vulnerable to a sell-off,
strategists say. For details click on [ID:nN08307897].

Following are some U.S. companies whose credit default swap
costs are lower than those on the U.S. government. Prices are
based on New York closing values as of Friday, June 5.
USA: 39.6 bps
AT&T Mobility 22.5
Alltel Corp 22.5
Baxter Intl (BAX.N) 24.5
Campbell Soup (CPB.N) 25.5
Intel Corp (INTC.O) 29.6
Bristol Myers (BMY.N) 29.6
Lockheed Martin (LMT.N) 31.5
Microsoft (MSFT.O) 32.5
UST Inc. 33.2
Sara Lee Corp (SLE.N) 37.5
McDonald's (MCD.N) 38.5
AT&T (T.N) 38.6

Source: CMA DataVision
(Reporting by Dena Aubin; editing by Jeffrey Benkoe)