The concern follows a controversy this week over Britain's Rentokil , where it was discovered that the company's default swaps did not cover new debt issued by a distinct entity.
The cost of insuring against a default by Pilkington swung between 55 and 67 basis points on Thursday morning.
"The question of deliverables is a hot issue at the moment. People are spooked by Rentokil, and there's a lot of other names in the frame as well," said Rick Mattila, credit analyst at Dresdner Kleinwort Wasserstein.
The question hinges on whether Pilkington will provide a guarantee for debt financing following its takeover by Nippon Sheet Glass . If there is no guarantee, and with just one 2008 bond outstanding, the cost of default insurance will fall because of the slim chance of a default on the single short-dated bond.
"There is also a fear that Pilkington may buy back its euro bond," said an analyst in London.
A spokesman for NSG said the company had not yet made a decision on a buyback.
On Wednesday, credit default protection on British services group Rentokil Initial fell sharply as investors realised a 10-year sterling note would be sold out of a new company formed last year, cutting the value of existing insurance.
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Pilkington CDS swing in latest deliverables panic
Yahoo Asia reported that credit default swaps on Pilkington were volatile on Thursday amid speculation the British glassmaker's imminent takeover may prompt corporate action that cuts the value of its default protection.