Morgan Stanley debt protection costs jump
NEW YORK, Oct 9 (Reuters) - The cost to insure the debt of Morgan Stanley (MS.N) jumped on Thursday, as its stock price plunged more than 16 percent.
Morgan Stanley's credit default swaps jumped to a cost of around 25 percent of the the sum insured on an upfront basis, or $2.5 million in a lump sum to insure $10 million for five years, plus annual premiums of 5 percent, said an analyst.
The swap had traded at around 18 percent on Tuesday afternoon. Credit default swaps trade upfront when a company is considered distressed. (Reporting by Karen Brettell; Editing by Theodore d'Afflisio)
