AIG's credit default swaps fall to 28 pct upfront

NEW YORK, Nov 10 (Reuters) - The cost of insuring American International Group's (AIG.N) debt with credit default swaps tumbled sharply on Monday after the Federal Reserve hiked its support for the insurer to about $150 billion.

Five-year credit default swaps on AIG fell to 28 percent upfront from 49 percent upfront on Friday, plus 500 basis points in annual premiums, according to data from Markit Intraday. That means it costs $2.8 million a year in upfront costs to protect $10 million of AIG's debt for five years, plus $500,000 in annual premiums.

Under a new plan, the government is putting $150 billion at AIG's disposal, $27 billion more than it extended previously, after an initial bailout attempt failed to stem massive losses. For details click on [ID:nLA322782]. (Reporting by Dena Aubin; Editing by Theodore d'Afflisio) (dena.aubin@thomsonreuters.com; +1-646-223-6325; Reuters Messaging: dena.aubin.reuters.com@reuters.net))