Middle East Conflict Raises Euro High-Yield Bond Default Insurance Costs

Investor caution has increased due to the ongoing Middle East conflict, leading to a rise in the cost of default insurance for high-yield euro bonds. According to Jin10, this week, the market's focus will be on interest rate decisions and policy guidance from central banks in the United States, Eurozone, United Kingdom, and Japan. Data from S&P Global Market Intelligence shows that the iTraxx Europe Crossover Index, which tracks euro high-yield credit default swaps, has risen by 4 basis points to 310 basis points. Meanwhile, the iTraxx Europe Main Index, which monitors euro investment-grade credit default swaps, remains unchanged at 65 basis points.