Cost of insuring European corp bond defaults jumps to highest since May

Sept 20 (Reuters) - The cost of insuring against European corporate bond defaults jumped to the highest since late May on Monday, as risk aversion rippled across world markets.

Falling commodity prices, unease ahead of Wednesday's U.S. Federal Reserve meeting and worries around Chinese property company Evergrande all hit riskier assets, sending stock markets tumbling.

The iTraxx European Crossover index of credit default swaps, which measures the cost of insuring exposure to a basket of sub-investment-grade European companies, jumped as much as 27 basis points to 253 bps, the highest since late-May.

The iTraxx Europe index, which measures the cost of insuring against default on investment-grade corporate bonds, rose seven basis points to 51 bps, also the highest since late May.

Both indexes were set for their biggest daily jumps since mid-March. (Reporting by Yoruk Bahceli; editing by Dhara Ranasinghe)

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