Credit default swaps on Countrywide's home loan unit, Countrywide Home Loans Inc., rose to 26 percent of the amount insured in one lump sum upfront, in addition to annual payments of 500 basis points, out from 20 percent up front plus annual premiums on Monday, according to data from Phoenix Partners Group.
NEW YORK (Reuters) - Countrywide Financial Corp.'s <CFC.N> debt protection costs jumped on Tuesday amid rumors about more financial problems at the largest U.S. mortgage lender.
Credit default swaps on Countrywide's home loan unit, Countrywide Home Loans Inc., rose to 26 percent of the amount insured in one lump sum upfront, in addition to annual payments of 500 basis points, out from 20 percent up front plus annual premiums on Monday, according to data from Phoenix Partners Group.
Credit default swaps trade on an upfront percentage basis when the market considers a company distressed. A spokesman for Countrywide was not immediately available to comment.
(Reporting by Dena Aubin; Editing by James Dalgleish)
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