Credit swap spreads edge out on Iraq war fears

Spreads in the credit default swap market started widening in trading this week, as sellers of credit protection left the market due to increasing uncertainty about a quick resolution of the US-led invasion of Iraq, London-based traders said today.

In trading last week, credit default swap spreads for European corporates and financial services firms tightened, in line with an equity rally following initial positive news about a speedy coalition conflict in Iraq. But the equity rally abruptly ended on Monday after reports about stronger-than-expected resistance from Iraqi forces made investors doubt that the war would end as soon as was initially hoped.

London-based credit derivatives traders said credit protection for European autos

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