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Weekly Credit Strategy Update
Fed's survey from senior loan officers illustrates the challenges in the US
Fri, May 9 2008, 15:44 GMT
by Danske Research Team
It has been a rather eventful week in the credit market. Spreads are somewhat wider on the back of continuing poor newsflow from the US housing market. In Denmark, the central bank has widened the list of eligible assets for monetary policy operations. Furthermore, lending standards in the US and Europe continue to tighten.
Following a strong rally by the end of last week, spreads have widened out again on the back of poor results from Fannie Mae and Countrywide that have highlighted the poor state of the US housing market, which continues to surprise on the downside. iTraxx Europe and high yield credit spreads in iTraxx Crossover are currently trading at around 81bp and 463bp, respectively.
During the week there has been a significant increase in the activity in the primary market (see table below). New issues in most cases continue to be priced at a significant discount to CDS and thereafter perform well.
Published on Fri, May 9 2008, 15:48 GMT
Archive
- The activity in the primary market continues
Published On Fri, May 16 2008, 13:01 GMT - Fed's survey from senior loan officers illustrates the challenges in the US
Published On Fri, May 9 2008, 15:44 GMT - Spreads are a bit tighter in the secondary market
Published On Wed, Apr 30 2008, 15:59 GMT - Spreads are taking a breather
Published On Fri, Apr 25 2008, 13:00 GMT - Spreads continue to rally
Published On Thu, Apr 17 2008, 14:55 GMT
Danske Bank
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http://www.danskebank.com/ | danskeresearch@danskebank.com
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