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CIT credit protection costs rise to 46 percent upfront

NEW YORK
Tue Jul 21, 2009 9:16am EDT

NEW YORK (Reuters) - The cost of insuring CIT Group's debt with credit default swaps rose on Tuesday after analysts said a $3 billion lifeline announced on Monday would only delay a bankruptcy filing.

CIT's five-year credit default swaps rose to 46 percent upfront from 39.5 percent late on Monday, according to data from CMA DataVision. That means it costs $4.6 million in an upfront payment, plus $500,000 a year to insure $10 million of debt.

(Reporting by Dena Aubin; Editing by James Dalgleish)


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