Feb. 11 (Bloomberg) -- A gauge of U.S. corporate credit risk held before euro-zone finance ministers meet to discuss aid for Cyprus and Greece.
The Markit CDX North American Investment Grade Index, a credit-default swaps benchmark that investors use to hedge against losses or to speculate on creditworthiness, fell 0.3 basis point to a mid-price of 89.1 basis points at 7:57 a.m. in New York, according to prices compiled by Bloomberg.
Ministers from the 17-member euro area meet today in Brussels to discuss aid to Cyprus and Greece as concern over the region’s sovereign-debt crisis revives. Group of 20 finance chiefs and central bankers will gather in Moscow Feb. 15-16.
The credit-swaps index typically falls as investor confidence improves and rises as it deteriorates. The contracts pay the buyer face value if a borrower fails to meet its obligations, less the value of the defaulted debt. A basis point equals $1,000 annually on a contract protecting $10 million of debt.