Financial Times FT.com

Subprime fall-out

Fresh credit market turmoil

By Sarah O’Connor and Robert Cookson in London and Michael Mackenzie in New York

Published: February 20 2008 19:32 | Last updated: February 20 2008 19:32

Credit markets were thrown into fresh turmoil on Wednesday as the cost of protecting the debt of US and European companies against default surged to all-time highs.

The sharp jump, which rivalled the sell-off at the height of last summer’s credit market turmoil, came as traders rushed to unwind highly leveraged positions in complex structured products.

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