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 Middle East war and declining market interest in risk assets, the cost of euro high-yield credit default insurance has surged to an eight-and-a-half-month high. Oil prices have soared above $100 per barrel, sparking concerns in the market about a renewed rise in global inflation and the possibility of central banks raising interest rates. Data from S&P Global Market Intelligence shows that the iTraxx Europe Crossover Index, which tracks euro high-yield credit default swaps, rose by 17 basis points to 306 basis points, reaching its highest level since June 2025. The iTraxx Europe Main Index, which tracks euro investment-grade CDS, increased by 3 basis points to 62 basis points, marking a nine-month high.