Credit protection for Ahold was trading at 37.5/40.5 percentage points upfront. It traded at its widest point on Tuesday, then tightened slightly on Wednesday to 35/40 percentage points upfront. European credit spreads on utilities and retailers were about 3bp to 10bp wider this week. The downgrade by rating agency Moody’s yesterday of Spanish utility Endesa by two notches caused its protection to trade 5bp wider at 120/130bp.
In telecoms, spreads widened yesterday following rumours of a pot