Terror threats push up European credit default spreads

Credit default swap spreads for European corporates started to widen during the later part of this week. Fears of a terrorist attack in London or elsewhere, coupled with generally weak equity markets, started to reduce confidence in the market, traders said.

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. In

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options


Want to know what’s included in our free membership? Click here

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here