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Metlife credit default swaps start trading upfront

Thu Oct 9, 2008 1:44pm EDT

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NEW YORK, Oct 9 (Reuters) - Metlife Inc's (MET.N) credit default swaps on began trading on an upfront basis on Thursday, indicating perceptions that its credit quality is considered distressed.

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The cost to insure Metlife's debt rose to around 10.5 percent the sum insured as an upfront sum, or $1.05 million to insure $10 million in debt for five years, in addition to annual premiums of 5 percent, according to Markit Intraday.

The swaps had closed on Wednesday at a spread of around 717 basis points, or $717,00 per year for five years to insure $10 million in debt, according to Markit. (Reporting by Karen Brettell; Editing by Theodore d'Afflisio)

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