Middle East conflict drives up the cost of euro high-yield bond default insurance

According to Golden Ten Data on March 9, due to the ongoing war in the Middle East and declining market interest in risk assets, the cost of euro high-yield credit default insurance has risen sharply to an eight-and-a-half-month high. Oil prices have soared above $100 per barrel, sparking market concerns about a renewed rise in global inflation and the possibility of central bank rate hikes. Data from S&P Global Market Intelligence shows that the iTraxx Europe Crossover Index for euro high-yield credit default swaps rose by 17 basis points to 306 basis points, the highest level since June 2025. The iTraxx Europe Main Index for euro investment-grade CDS rose by 3 basis points to 62 basis points, a nine-month high.