Japanese credit spreads tighten, especially in electronics

The cost of credit protection on computer chip makers Fujitsu and NEC five-year debt traded at 145/175bp and 75/95bp respectively, contracting from mid-spreads of 190bp and 110bp last Friday. “Earlier in the week we saw selling of protection on NEC at 103bp and then 97bp,” said one trader. “We’re now seeing a bit of back compression in the high-risk credits, and that has now filtered through to the high-grade names.” Credit default swap spreads on Japan’s largest consumer and electronics gro