Over the past week and throughout the downturn in the credit markets, the cost of insuring financial services firms' debt has consistently increased.
A rise in the cost of the insurance, known as credit default swaps, indicates debt holders believe there is a greater chance of default by the financial companies. Especially over the past week, those insurance costs have been increasing rapidly as more debt holders fear companies like Lehman Brothers Holdings Inc. and Washington Mutual Inc. could collapse and not be able to repay their debt.
