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Campbell’s soup now safer than US bonds

Posted By on December 11, 2008

At least according to this article.

The bonds issued by the US government are now more expensive to insure than the bonds of the people who make Campbell Soup.

Dec. 10 (Bloomberg) — The cost to hedge against losses on U.S. Treasuries surpassed the price of default protection on bonds from Campbell Soup Co. and drugmaker Baxter International Inc. as government spending on stimulus packages grows.

Insurers are now charging an extra $17,000 per contract to insure US Government debt, over and above what they charge to insure loans to the soup-maker.


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