European credit derivatives spreads widened on Monday, along with a slump in global stock markets, on concerns that recent market gains had outpaced an economic recovery that will be slow and halting. By 1346 GMT, the investment-grade Markit iTraxx Europe index was at 99 basis points, according to data from Markit, 4.5 basis points wider versus late on Friday.
The Markit iTraxx Crossover index, made up of 44 mostly "junk"-rated credits, was at 630 basis points, 27 basis points wider. US stocks opened sharply higher, while the CBOE Volatility Index, a fear gauge for the credit market as well as equity, jumped more than 15 percent in early trading.
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