Nov. 26 (Bloomberg) -- The cost of hedging against losses on U.S. Treasuries surged to an all-time high after the Federal Reserveâs new $800 billion effort to combat the financial crisis raised concern about how the ballooning debt will be funded. Benchmark 10-year credit-default swaps on U.S. government bonds jumped six basis points to 56, according to CMA Datavision prices at 12:20 p.m. in London. The contracts have risen from below two basis points at the start of the credit crisis in July 2007. âThere is a lot more money to be spent and it is not clear how it is going to be financed,â said Tim Brunne, a Munich-based credit strategist at UniCredit SpA. âCredit spreads donât reflect expectation of default, just the uncertainty over the enormous cost to the government.â The Fedâs new plan to kick-start markets for loans to students, car buyers, credit-card borrowers and small businesses means it will be taking on credit risk by buying debt. The central bank pledged to purchase as much as $500 billion in mortgage-backed securities as well as up to $100 billion in direct debt of Fannie Mae and Freddie Mac, the worldâs two largest mortgage buyers, and Federal Home Loan Banks. âThey are loading their balance sheet with credit risk,â Brunne said in a phone interview. âWhere does all the money come from?â http://www.bloomberg.com/apps/news?pid=20601009&sid=aWA3UOD97dcc&refer=bond Hum...anybody any idea where the money is coming from ?