Radioshack swaps jump to record after unexpected quarterly loss
The cost to protect against a default by RadioShack Corp. jumped to a record after the electronics retail chain reported an unexpected second-quarter loss.
Credit-default swaps on Fort Worth, Texas-based RadioShack climbed 4 percentage points to a mid-price of 36.5 percent upfront, according to data provider CMA, which is owned by McGraw -Hill Cos. and compiles prices quoted by dealers in the privately negotiated market. The increase means the cost to protect $10 million of the company’s debt jumped to $3.65 million initially and $500,000 annually for five years, from $3.25 million upfront.
To contact the reporter on this story: Mary Childs in New York at mchilds5bloomberg.net
To contact the editor responsible for this story: Shannon D. Harrington at sharrington6bloomberg.net