European spreads widen marginally

27 Oct, 2009

European credit derivatives indices widened marginally on Monday in a very quiet credit market. The primary market remained favourable. Long-dated telecom issuance from Telefonica and Telecom Portugal were the highlights as both companies sold 10-year debt in deals that were launched and completed within the day.
ING hybrids rallied 4 points on news the Dutch bancassurer was restructuring and the EU would not prevent it from paying coupons on hybrid Tier 1 debt. By 1720 GMT, the investment-grade Markit iTraxx Europe index was at 84 basis points, according to data from Markit, 1 basis points wider versus late on Friday. The Markit iTraxx Crossover index, made up of 50 mostly "junk"-rated credits, was at 496 basis points, some 6 basis points wider.

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