European CDS indices widen

European credit default swap indexes widened late Wednesday, ignoring a commodities-fuelled upturn in equities as the market eyed a further weakening in Greek sovereign debt. By 1816 GMT, the investment-grade Markit iTraxx Europe index was at 70 basis points, according to data from Markit, 2 basis points wider versus late on Tuesday, according to data from BGC Partners.
The Markit iTraxx Crossover index, made up of 50 mostly "junk"-rated credits, was at 407 basis points, 8 basis points wider. "Greece's sovereigns widened quite a bit (today)," said an analyst at a US investment bank, suggesting this may have underpinned the negative sentiment in corporate CDS. The cost of insuring Greek debt hit a record high after Moody's warned its economy risks a "slow death" if it does not implement challenging fiscal reform measures.