CDO activity sparks tightening in default swap prices

“We are seeing a bit of a technical rally and it’s driving spreads in,” noted one trader at a leading dealing house in London. “There’s a number of CDOs being worked on and these technical factors are balancing out negative fundamentals - prices may well even go tighter.”

Traders said default prices were noticeably tighter across the board, with the cost of protection for European telecoms cheapening quickly. Five-year credit protection for BT Group debt was trading at 63/73 basis points tod

To continue reading...

You need to sign in to use this feature. If you don’t have a 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 indvidual account here: