The cost of insuring US investment bank Bear Stearns debt with credit defaults swaps has soared following an earlier dip today after JP Morgan Chase and the Federal Reserve Bank of New York said they would provide emergency secured funding to the firm.
After the funding agreement was announced, the cost of insuring Bear Stearnsâ outstanding debt through credit default swap contracts fell 155 basis points to 530 basis points in early trading before rising again to 730 basis points.
