Financial Times FT.com

Credit insurance costs soar to record

By Stacy-Marie Ishmael and Gillian Tett in London, and Saskia,Scholtes in New York

Published: July 31 2007 03:00 | Last updated: July 31 2007 03:00

The cost of insurance against credit defaults hit record levels on both sides of the Atlantic yesterday amid concerns that some investors were being forced to sell assets to cover losses onsubprime mortgages.

Investors rushed to buy contracts that would protect them against corporate credit defaults after it emerged that more European institutions had suffered losses following the crisis in the US subprime mortgage market.

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