Thursday, May 31, 2007

US CREDIT-Abitibi, Bowater spread gap may be opportunity

(Reuters) - The cost to protect Canadian firm Abitibi's bonds with
credit default swaps rose roughly 18 basis points on Thursday
to around 625 basis points, which means it costs $625,000
annually to insure $10 million of debt for five years,
according to market participants.




That's roughly $130,000 more than the credit protection
costs for U.S. newsprint and specialty paper maker Bowater,
which are around $495,000.


Read more at Reuters.com Bonds News

No comments: