European credit derivatives indices tightened on Wednesday as European and US equity markets rose and the Volatility Index declined, showing reduced fear of a market collapse. By 1518 GMT, the investment-grade Markit iTraxx Europe index was at 88.5 basis points, according to data from Markit, 2.75 basis points tighter versus late on Tuesday.
The Markit iTraxx Crossover index, made up of 44 mostly "junk"-rated credits, was at 581 basis points, 11 basis points tighter.