Credit swap spreads edge out on Iraq war fears

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, i