LONDON, March 13 (Reuters) - The cost of insuring
exposure to European junk bonds on Monday posted its biggest-one
jump in three months as concerns about the banking sector
gripped financial markets, hurting risky assets.
The spread on the iTraxx European Crossover index, which
measures the cost of insuring exposure to a basket of
sub-investment-grade European companies, surged 36 basis points
(bps) from Friday's close to 460 bps and hit its highest since
early January. The iTraxx Europe sub financials index jumped 30 bps from
Friday's close to 194 bps, its highest since Dec. 20.
Separately, the cost of insuring against a Credit Suisse
debt default rose to a new all-time high at 466 bps, up 49 bps
from Friday's close.
European stocks closed down over 2% as the collapse
of startup-focused Silicon Valley Bank and Signature Bank sparked worries about broader banking sector
contagion.
Bank shares closed 5.65% lower . Credit Suisse ended
down 9%, having hit record lows earlier in the day.
(Reporting by Chiara Elisei)
