From this Bloomberg article, I thought it would be interesting to see a list of companies with their CDS prices, which shows how the market is pricing their relative risk to a debt default.
|Markit LCDX index||84.50 %||Leveraged US loans.|
|AIG||42.00 %||Upfront, plus 5 % per year to protect 100 %.|
|30.00 %||A hedge fund.|
|Markit iTraxx Crossover Index||8.75 %||Mostly European high-yield, high-risk companies.|
|Contracts on Peabody Energy||6.40 %||Largest US coal miner.|
|New York Times||6.00 %|
In other words, if I wanted to insure $10 million of General Motor’s debt, I would have to pay upfront $6.7 million, plus a yearly premium, in the order of $800,000.