European CDS widen

20 Nov, 2009

European credit derivatives indices widened on Thursday as equity markets in the US and Europe sold off on muted data and bearish sentiment. By 1526 GMT, the investment-grade Markit iTraxx Europe index was at 85 basis points, according to data from Markit, 2.75 basis points wider versus late on Wednesday. The Markit iTraxx Crossover index, made up of 50 mostly "junk"-rated credits, was at 526.55 basis points, 14.55 basis points wider.
Amongst the biggest wideners in the market were Spanish hotel chain Sol Melia, which had widened by 55 basis points or 15 percent at midday, according to a note from Credit Market Analysis, and Hellenic Telecommunications, which was 10 basis points or 14 percent wider. Amongst the top tighteners at midday were Infineon Technologies, which tightened by nearly 15 basis points or 4.4 percent, said Credit Market Analysis.

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