Trading volumes in European credit markets were light on Friday, while credit indexes eased after Wall Street stocks opened lower on concerns China's move to curb credit could hamper corporate earnings.
The iTraxx Europe index of 125 key investment-grade default swaps widened about 0.25 basis points by 1430 GMT, bid at 34 basis points, a trader said, a reverse of an earlier rally.
The FTSE Euro Corporate Bond Index showed investment-grade corporate bonds in euros yielding an average 52.3 basis points more than similarly-dated government bonds at 1449 GMT, 0.3 basis point less on the day.
Elsewhere in the secondary market, the widely traded autos sector was also quiet.
"There is no activity in the afternoon, everything is unchanged," said a car bond trader in London.
He said the credit default swaps of GMAC were bid unchanged at 290 basis points.
Moody's Investors Service cut the issuer rating of Nippon Sheet Glass one notch to Baa2, citing expectations that the Japanese company's financial flexibility would deteriorate as a result of its debt-financed acquisition of British glassmaker Pilkington.There was no market reaction to the Nippon Glass downgrade in the CDS market, a second trader said.
In the primary market, Italian government-owned fund Patrimonio Uno plans to sell a 397-million-euro ($503 million) commercial mortgage backed security next week, a source close to the deal said on Friday.
Banca Nazionale del Lavoro S.p.A. (BNL), Banca Intesa and Morgan Stanley are the lead managers for the deal from Patrimonio Uno CMBS S.r.l.
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