Credit risk rising

The cost of insuring corporate bonds from non-payment in Australia increased, according to traders of credit-default swaps....The Markit iTraxx Australia index rose 0.5 basis point to 113.5 basis points.....The gauge has fallen 14 basis points since Dec. 31, extending a 53 basis-point drop in 2012, CMA data show....Credit-default swap indexes are benchmarks for insuring bonds against default and traders use them to speculate on credit quality. A drop signals improving perceptions of creditworthiness, while an increase suggests the opposite (here).