Credit risk surges as investors fear bank failures threaten markets

Credit risk indicators rose as investors worried about contagion risks across corporate debt markets after the collapse of Silicon Valley Bank (SVB) and New York's Signature Bank.

March 14, 2023 . 12:37 AM

1 min read

Credit risk indicators rose as investors worried about contagion risks across corporate debt markets after the collapse of Silicon Valley Bank (SVB) and New York's Signature Bank.
An index of credit default swaps (CDS) on U.S. investment-grade companies rose to 90.2 basis points, its highest since November.
The cost of insuring exposure to European junk bonds on Monday posted its biggest jump in three months.
Investment grade credit spreads widened about 15 basis points last week.
The Federal Reserve unveiled a new program to ensure banks can meet the needs of all their depositors.