Danske Research Team
Danske Bank A/S
What's on our mind
- General credit market news
Volatility in European credit indices was high last week, following the turbulence in global stock markets. Initial widening at the beginning of the week was followed by tightening and indices closed at a tighter level than the previous week. •The index for European investment grade credits (iTraxx main) traded around 72bp yesterday morning, compared with around 77bp a week ago. The index for high-yield credits (iTraxx Crossover) traded around 323bp compared with around 360bp a week earlier.
Apart from the development of the economic situation in China, the main events this week are the ECB and Swedish Riksbank meetings on Thursday.
Among Nordic companies, SCA announced an organisational split between its Forest Products and Hygiene divisions. Bloomberg News reported that specialty pharma company Meda is considering a sale of its US operations.
New issuance activity has remained dominated by financial issuers. In the local NOK and SEK markets, some property companies such as Citycon and Castellum were also active last week. We expect increased new issuance activity in coming weeks.
We highlight the exposure to China among some Nordic issuers as published in Credit Outlook H2 15 - ECB keeps the party going, but unwanted guests may join, 21 August. See overleaf for details.
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