European corporate credit default swap spreads were tighter on Wednesday, mostly in response to a firm tone on equity markets in the United States and Asia. There was still a focus on Ireland and its banks ahead of a government estimate on the final cost of rescuing Anglo Irish Bank, expected later this week.
A more nervous tone in the primary market has shown signs of slowing this month's hectic pace of new issuance. By 0703 GMT, the investment-grade Markit iTraxx Europe index was at 113 basis points, according to data from Markit. That was 1.75 basis points tighter versus late on Tuesday, according to data from BGC Partners. The Markit iTraxx Crossover index, made up of 50 mostly "junk"-rated credits, was at 512.25 basis points, 7.75 basis points tighter.