Asian Credit-Default Swaps Head for Biggest Drop in 11 Months

The cost of insuring Asian investment-grade debt against default fell the most in 11 months amid signs the Middle-East conflict may be nearing an end.

Credit-default swaps on such debt dropped by at least seven basis points, according to traders, putting a Markit index for the securities on track for its biggest one-day decline since May. At the same time, the yield premiums on high-grade Asian bonds narrowed by at least one basis point, the traders said, set for the first drop in four days, according to a Bloomberg index.