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Credit Swaps Fall as Bernanke Says U.S. Economy May Accelerate 

January 6, 2014
Sarika Gangar, Bloomberg

A gauge of U.S. corporate credit risk fell to about the lowest level in six years after Federal Reserve Chairman Ben S. Bernanke said the economy is poised for faster growth even as he cuts stimulus. Relative yields on investment-grade debt declined to the least since 2007.

The Markit CDX North American Investment Grade Index, a credit-default swaps benchmark used to hedge against losses or to speculate on creditworthiness, decreased 0.7 basis point to 62.6 basis points as of 3:45 p.m. in New York, according to prices compiled by Bloomberg. The measure closed at 62 basis points on Dec. 26, the lowest since October 2007.

The headwinds that have held back the U.S. economy may be abating, which “bodes well for U.S. economic growth in coming quarters,” Bernanke said today in remarks prepared for a speech in Philadelphia.

Read more: Bloomberg

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