European corporate credit default swap spreads tightened late on Tuesday, helped by reports that that eurozone countries will help debt-laden Greece. Greece's debt problems are set to be discussed at a summit of European Union leaders on Thursday, where European Central Bank President Jean-Claude Trichet is set to attend.
"The market expects Greece will get assistance," said Gary Jenkins, head of fixed income research at Evolution Securities. By 1737 GMT, the investment-grade Markit iTraxx Europe index was at 88.75 basis points, according to data from Markit, 5.25 basis points tighter versus late on Monday. The index had earlier touched around 97 basis points, its widest since July last year, according to Markit data. The Markit iTraxx Crossover index, made up of 50 mostly "junk"-rated credits, was at 479 basis points, 16 basis points tighter.