Default Risk At New Highs -- Scary But Not Surprising

Credit default swaps that measure default risk for investment grade debt are trading at their highest levels of the bear market.  Below we highlight an index that measures default risk for 125 companies with investment grade debt ratings.  Just as the stock market made new lows yesterday, default risk made new highs.  Fear is gripping the markets, and nothing the government or anyone else has done thus far has helped alleviate this fear.