European corporate credit default swap spreads were barely changed on Thursday alongside flat European equity markets. CDS spreads reached their tightest levels for the year on December 29, but have edged wider since then in very thin trading ahead of the New Year holiday.
The CDS indexes have rallied massively over the past 12 months as financial markets have begun to recover from the credit crisis. Series 8 of the investment grade Markit iTraxx Europe index, for example, stood at around 287.5 basis points on January 1, 2009. By 1048 GMT, current series of the iTraxx Europe index was at 73 basis points, according to data from Markit, unchanged from late on Wednesday, according to data from BGC Partners. The Markit iTraxx Crossover index, made up of 50 mostly "junk"-rated credits, was at 431.75 basis points, 1.75 basis points wider.