Japan credit default swaps continue technical tightening

The market remains "a very technical market", says one trader in Tokyo who has seen “aggressive selling of credit protection". A lack of liquidity in the market also exacerbated the trend, dealers said. One dealer said spreads overall have tightened by 15% to 20% this week. There were some uncomfirmed rumours that the aggressive offers could have resulted from participants closing their portfolio, liquidating their positions and wiping their losses.Sentiment was further lifted by positive ne