European corporate credit default swap spreads edged wider on Friday on uncertainty about the health of the US economy and corporate earnings, but BP credit default swaps tightened after it capped its oil leak. Markets were nervous ahead of key company results, including from Bank of America, Citigroup, General Electric and Mattel.
BP's five-year credit default swaps tightened by 36 basis points to 330 bps, Markit said, after the company stopped the leak in the Gulf of Mexico with a containment cap installed three days earlier.
Oil and gas producer Apache Corp is seeking $6 to $7 billion of financing to purchase up to $10 billion in assets from BP Plc in a deal that could be announced next week, CNBC reported on Thursday. In the broader market, the investment-grade Markit iTraxx Europe index was at 116.25 basis points by 0930 GMT, according to data from Markit. That is 0.25 basis points wider versus late on Thursday, according to data from BGC Partners.
The Markit iTraxx Crossover index, made up of 50 mostly "junk"-rated credits, was 0.25 basis points wider at 527.5 basis points. Spanish helicopter operator Inaer Aviation has set guidance on a planned 470 million euro 7-year senior secured note at a yield of 9.5 to 9.75 percent, a source familiar with the deal said.
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