September 28, 2015 / 12:20 PM / 4 years ago

Glencore credit default swaps surge to record high above 700 bps

LONDON (Reuters) - The cost of insuring exposure to the debt of mining firm Glencore hit record highs on Monday as fears grew about the company’s ability to withstand the prolonged fall in global metals prices.

Data provider Markit said five-year credit default swaps (CDS) in Glencore rose 154 basis points from Friday’s close to 708 basis points. This outstrips the previous highs of around 670 bps hit in October 2011.

Glencore shares are also at record lows, down 25 percent on Monday with 3.5 billion pounds wiped off its market value. The company has embarked on a drive to sell assets and raise cash to cut its $30 billion debt pile after a crunch in coal and copper prices.

Reporting by Sujata Rao; editing by Karin Strohecker

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