European speculative-grade credit spreads were volatile on Tuesday as investors fretted that the recent rally may be overdone. By 1511 GMT, the Markit iTraxx Crossover index, made up of 45 mostly "junk"-rated credits, was at 791.5 basis points, according to data from Markit, 13.5 basis points wider versus late on Monday.
The investment-grade Markit iTraxx Europe index was a touch wider at 129.5 basis points. Despite more choppy spread levels, there was a volley of new bonds from banks and companies including a unit of GE Capital, Volvo Treasury, HSBC and Banco Sabadell. Volvo plans to raise 500 million euros ($682 million) via a three-year bond, while GE Capital European Funding plans to raise 1 billion euros via a bond due to mature in January 2013.