October 24, 2008 / 12:51 PM / 11 years ago

UPDATE 1-US credit default swap index widens to record-Markit

(Updates with background, financial CDS moves)

NEW YORK, Oct 24 (Reuters) - U.S. investment-grade credit default swaps widened to a record on Friday as stock futures dove in early trading, causing a suspension of the futures market.

Global stock markets plummeted as panicked investors moved to liquidate risky positions. Japan's Nikkei index .N225 ended down 9.6 percent and European shares lost 8 percent. For details, see [MKTS/GLOB].

By 8:00 a.m. (1200 GMT) December Dow Jones futures DJZ8, Standard & Poor’s 500 futures SPZ8 and Nasdaq 100 futures NDZ8 all lost the maximum amount permissible before the start of futures trading in the United States.

The New York Stock Exchange and Nasdaq said trading would open as normal at 9:30 a.m. [ID:nWEN9541].

Investment-grade credit default swaps rose about 26 basis points to about 237 basis points, according to Markit Intraday. The index had traded earlier at a record 243.75 basis points.

Bank credit spreads were about 5 basis points to 10 basis points wider, traders said.

Five-year credit default swaps of Goldman Sachs rose to 285 basis points, or $285,000 a year to protect $10 million of debt, up from 275 basis points on Thursday, according to Phoenix Partners Group.

Morgan Stanley five-year CDS traded at 420 basis points, versus 410 basis points on Thursday, while Merrill Lynch spreads widened to 215 basis points from 205 basis points. (Reporting by Walden Siew; Editing by Tom Hals)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below