European credit default swap spreads were slightly tighter on Tuesday, while spreads on European travel company TUI were boosted strongly by the company's refinancing. By 1505 GMT, the investment-grade Markit iTraxx Europe index was at 84.50 basis points, according to data from Markit, 0.75 basis points tighter versus late on Monday.
The Markit iTraxx Crossover index, made up of 50 mostly "junk"-rated credits, was at 563 basis points, 8 basis points tighter. Five-year CDS on TUI Travel, Europe's biggest tour operator, tightened sharply after the company announced a refinancing, including the repayment of 900 million pounds ($1.44 billion) of borrowings from TUI AG, its majority shareholder.
The CDS was about 158 basis points tighter at about 830 basis points, one trader said. TUI was the most actively traded CDS on Tuesday, according to Markit data. Europe CDS spreads have moved sideways this week, after a strong rally over the past 6 months. There is evidence of investor flows slowing down, but the asset class still has plenty of fans.