Mid-week, the credit protection market continued to shake off the general financial malaise and war jitters. Traders said spreads remained fairly resilient as strong technical factors, including continued synthetic collateralised debt obligation issuance, kept spreads relatively tight compared with the equity markets. But from Thursday, credit default bids started to widen across European corporates, pulled by weak credit fundamentals.
Negative credit news also contributed to spread widening
The week on Risk.net, June 16–22, 2017Receive this by email
Back to Top