European corporate credit default swap spreads maintained a tighter trend on Monday, helped partly by buoyant European equities and solid results from banks BNP Paribas and HSBC. By 0935 GMT, the investment-grade Markit iTraxx Europe index was at 102.5 basis points, according to data from Markit. That is 1.50 basis points tighter versus late on Friday, according to data from BGC Partners.
The Markit iTraxx Crossover index, made up of 50 mostly "junk"-rated credits, was at 468 basis points, 11 basis points tighter. The Senior Financials index was around 111.5 basis points on Monday, about 4 basis points tighter than Friday, according to Markit. This represents a big move tighter from early June when it widened sharply on European sovereign debt fears. It closed on June 8 at 204 basis points.
Five-year CDS on BNP Paribas were about 4 basis points tighter at around 83 basis points. Five-year CDS on Dutch delivery group TNT were one of the few wideners in the Europe index, after the company posted lower-than-expected second quarter earnings and said it would split its mail and express units. TNT's 5-year CDS were about 5 basis points wider at around 94.50 basis points, according to Markit.
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