European corporate credit default swap spreads were wider on Tuesday, partly in response to further evidence that the US economic recovery is losing steam, raising the chances that the global economy could be headed for a double-dip recession. Sales of previously-owned US homes fell more steeply than expected in July to their lowest pace in 15 years.
By 1510 GMT, the investment-grade Markit iTraxx Europe index was at 115.50 basis points, according to data from Markit. That is 3.75 basis points wider versus late on Monday, according to data from BGC Partners. The Markit iTraxx Crossover index, made up of 50 mostly "junk"-rated credits, was at 513 basis points, 13 basis points wider.
The primary market stayed active despite the wobbles on equity and credit markets. Sweden's SEB and Austria's Erste both tapped investors for cash via a senior bond and covered bond respectively.
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