Surge in debt costs
The cost of insuring the debt of Australian real-estate companies rose at twice the pace of the nation's benchmark index for bond risk last year, over concern Europe's sovereign debt crisis would restrict funding for projects. Credit-default swaps on Westfield Group, GPT Group and Lend Lease Group surged an average 195 basis points to 331 basis points, the most since 2008. The Markit iTraxx Australia index rose 77 to 181, according to data provider CMA.
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