(Bloomberg) -- The perceived risk of owning the
bonds of Beazer Homes USA Inc. surged after the company, under
federal investigation for potential fraud, fired its chief
accounting officer for trying to destroy documents.
Credit-default swaps based on $10 million of the Atlanta-
based homebuilder's bonds jumped as much as $80,000 to a record
$530,000 after Beazer said it fired Michael Rand, according to
CMA Datavision in London. The five-year contracts, used to
speculate on the company's ability to repay its debt, retreated
to about $500,000 as of 4:30 p.m. in New York. An increase
suggests a decline in the perception of credit quality.
Read more at Bloomberg Bonds News
bonds of Beazer Homes USA Inc. surged after the company, under
federal investigation for potential fraud, fired its chief
accounting officer for trying to destroy documents.
Credit-default swaps based on $10 million of the Atlanta-
based homebuilder's bonds jumped as much as $80,000 to a record
$530,000 after Beazer said it fired Michael Rand, according to
CMA Datavision in London. The five-year contracts, used to
speculate on the company's ability to repay its debt, retreated
to about $500,000 as of 4:30 p.m. in New York. An increase
suggests a decline in the perception of credit quality.
Read more at Bloomberg Bonds News
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