European CDS widen

European credit derivative indices widened on Thursday, tracking stocks lower after new US home sales data showed weakness in the sector is still a major concern. By 1449 GMT the investment-grade Markit iTraxx Europe index was at 125 basis points, according to data from Markit, 3.5 basis points wider than late on Wednesday.
The Markit iTraxx Crossover index, made up of 45 mostly "junk"-rated credits, was at 751 basis points, 13 basis points wider. In the high-yield sector, five-year credit default swaps on British cable TV and telecoms company Virgin Media tightened by about 10 basis points to 550 basis points, a trader said, on the back of plans to issue bonds.