General Growth loans valued at 44.25 cents

Credit-default swaps traders set a value of 44.25 cents on the dollar for loans of General Growth Properties Inc. to settle the derivatives protecting against a default by the U.S. shopping-mall owner.

The price means sellers of credit-default swaps protecting against a default on the loans will pay 55.75 cents on the dollar to settle the contracts, according to auction administrators Markit Group Ltd. and Creditex Group Inc. Chicago-based General Growth filed the biggest real-estate bankruptcy in U.S. history on April 16, listing about $27.3 billion of debt.

Credit-default swaps, which are used to hedge against losses or to speculate on a company's ability to repay its debt, pay the buyer face value if a borrower defaults in exchange for the underlying securities or the cash equivalent set by the auction.