Japanese credit default swaps trading centres around convertibles

The cost of credit protection on computer maker Fujitsu’s five-year debt narrowed 5 basis points to 125bp this week, while computer maker NEC saw the cost of protection on its debt fall to 86bp from 90bp last Friday. The pair have some of the largest convertible bonds oustanding in the market.The overall market remained subdued. “We’ve gotten to such tight spread levels that there have been few bids [for credit protection],” said one trader. Some market participants who believe spreads will