Peugeot at risk of debt default

Peugeot Citroen has a 51% chance of default after the price of insuring its debt surged to a record, according to Bloomberg data.

Credit-default swaps on the company’s debt jumped 50 basis points to an all-time high of 800 in London at one stage yesterday. The contracts have doubled since March and signal a 51% probability of default within five years.

Peugeot spokeswoman Caroline Brugier-Corbiere declined to comment.