January jolt puzzles investors

News

news-1-gif

In the middle of January, spreads on lower-rated credits widened suddenly. The cause is still the subject of debate. The telecoms sector, the best performer in 2003, widened by 10bp to 75bp over the month – the widest the sector had been since early October and the most serious widening for the sector since August.

Bonds in the autos sector were also hard hit. General Motors’ euro-denominated e1.5 billion bond maturing in 2033 was trading at 204bp over asset swaps on January 9. Three-and-a-h

To continue reading...

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 indvidual account here: