Weekly Credit Strategy Update
The change from ECB in its collateral framework took indices wider at the end of the week
Fri, Sep 5 2008, 10:50 GMT
by Danske Research Team
Danske Bank A/S
CDS spreads widened late this week upon ECB’s decision to increase the haircuts on the collateral it accepts. Across asset classes, haircuts were increased for senior bank bonds and ABS, whereas covered bonds remained untouched. In the primary market we saw some corporate issuers coming to the market with a significant premium to the CDS. The ECB action and new issue premiums overshadowed positive influences from further declines in the oil price.
Published on
Fri, Sep 5 2008, 10:50 GMT
Archive
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