Europe’s credit risk rises on profit concern

Poor results: File picture showing a man passing by the headquarters of French bank Societe Generale in Paris. The bank’s disappointing earnings has renewed concerns about profits of financial companies in Europe. – Reuters

LONDON: European banks and insurers’ subordinated credit risk rose to the highest since March 2013 after disappointing earnings at Societe Generale SA and Zurich Insurance Group AG renewed concerns about financial companies’ profits.

The cost of insuring junior debt rose for the 10th time in 11 days, and a gauge tied to senior bonds also resumed an increase, according to data compiled by Bloomberg.