Traders eye negative CDS-bond basis

Changed market dynamic can be profitable for those firms able to capture it


A measure of divergence between credit default swap spreads and equivalent credit spreads on European corporate debt has dipped below zero for the first time in nearly four years, spurring trading activity for those able to take advantage of the difference.

The aggregate CDS-bond basis for investment grade European corporate debt, measured as CDS spreads minus the credit component of bond yields, rested at -8.9 in early March after dropping roughly 50 basis points from its high last year

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 or view our subscription options here:

You are currently unable to copy this content. Please contact 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 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 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