The cost of protecting Asia-Pacific bonds from default was little changed on the first working day of 2009, according to traders of credit-default swaps. The Markit iTraxx Australia index, linked to the debt of 25 companies including Qantas Airways Ltd. and BHP Billiton Ltd., was quoted at 340 basis points at 11:45 a.m. in Sydney, down 10 basis points from Dec. 31, according to ABN Amro Holding NV. The Markit iTraxx Asia index of 50 investment-grade borrowers outside Japan was quoted at 340 basis points as of 9:20 a.m. in Singapore, up 10 basis points from Dec. 31, Barclays Plc prices show. There were no indicative prices for the index of Asian high- yield borrowers, which was last quoted at 1,250 basis points on Dec. 30. Japan’s markets remain closed today for a holiday. The Markit iTraxx Japan index was quoted on Dec. 30 at 292.5 basis points, according to BNP Paribas SA. Credit-default swap indexes are benchmarks for protecting bonds against default and traders use them to speculate on changes in credit quality. The swaps pay the buyer face value in exchange for the underlying securities if a borrower fails to adhere to its debt agreements. A basis point, or 0.01 percentage point, is worth $1,000 on a swap protecting $10 million of debt.

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