The annual cost of insuring $10 million of debt against default, has been on the rise. Bear Stearns, in October 2007 was paying $76,000 for such protection. Three months later, this amount has tripled to $234,000. Citigroup debt protection for five years jumped to $94,000, up from $67,000 in December, and $27,000 in October. Merrill Lynch debt is $164,000, up from $140,000 at years end and $60,000 in October.
Such protection is less expensive for debt issued by the troubled nation of Pakistan than it is for debt issued by MBIA or Countrywide.
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