Weekly Credit Strategy Update
16
0
The US auto makers are in severe distress
Fri, Nov 21 2008, 13:00 GMT
by Danske Research Team
Despite relatively limited newsflow, the credit market has been extremely weak with spreads moving considerably wider. Also a number of CDSs on sovereigns have moved substantially wider, which illustrates the challenging technical situation in the market. The US auto makers are in severe distress and we are currently awaiting news on whether the Federal Government will provide aid to them.
It has been a rough week for credit (and equity) investors even though the newsflow has been relatively limited. The most important theme during the week was whether or not the three big US auto makers should get aid from the US Government. As we write it is still unclear if the companies will get help. Without help, one or more defaults are very likely to take place as liquidity is becoming a scarce resource for the auto makers. Within the next couple of days we will probably have more details and we think more clarity on this topic is likely to be a credit market mover in the short term.
Currently, the investment grade index, iTraxx Europe, trades at 183bp up from 148bp last Friday. The high yield index, iTraxx Crossover, trades at 920bp up from 814bp last week. During the week we passed the all-time wide levels in indices.
Published on Fri, Nov 21 2008, 13:11 GMT
Archive
- Obama administration has put forward a new proposal for regulating the US financial sector
Published On Fri, Jun 19 2009, 08:39 GMT - It has been a relatively quiet week in the credit market
Published On Fri, Jun 12 2009, 13:51 GMT - The rally is back and spreads have moved substantially tighter
Published On Thu, Jun 4 2009, 13:20 GMT - We move from overweight to neutral on credit
Published On Fri, May 29 2009, 14:09 GMT - The strong sentiment has returned and spreads are moving tighter
Published On Wed, May 20 2009, 12:23 GMT
Danske Bank
| Holmens Kanal 2-12, DK-1092 Copenhagen
http://www.danskebank.com/ | danskeresearch@danskebank.com
Legal disclaimer and risk disclosure
This publication has been prepared by Danske Bank for information purposes only. It is not an offer or solicitation of any offer to purchase or sell any financial instrument. Whilst reasonable care has been taken to ensure that its contents are not untrue or misleading, no representation is made as to its accuracy or completeness and no liability is accepted for any loss arising from reliance on it. Danske Bank, its affiliates or staff, may perform services for, solicit business from, hold long or short positions in, or otherwise be interested in the investments (including derivatives), of any issuer mentioned herein. Danske Bank's research analysts are not permitted to invest in securities under coverage in their research sector. This publication is not intended for private customers in the UK or any person in the US. Danske Bank A/S is regulated by the FSA for the conduct of designated investment business in the UK and is a member of the London Stock Exchange. Copyright () Danske Bank A/S. All rights reserved. This publication is protected by copyright and may not be reproduced in whole or in part without permission.Related reports
Weekly Market Commentary - Libor and Official Interest rates are at their narrowest by Mizuho Corporate Bank
Fri, Jul 3 2009, 14:33 GMT
London Gold Market Report by BullionVault.com
Fri, Jul 3 2009, 13:24 GMT
Your Summer Housing Market Update by Money and Markets
Fri, Jul 3 2009, 12:39 GMT
European Market Update - Spain June Services PMI: 41.2 v 39.1 prior by TradeTheNews.com
Fri, Jul 3 2009, 12:32 GMT
Daily Market Report - Risk aversion was the main theme of yesterday's trading session by Wachovia
Fri, Jul 3 2009, 12:25 GMT
eurusd, industry, us, recession, gbpusd, stocks, usdjpy
View AllRelated content
European Markets mixed, EUR rises and GBP lower
FXstreet.com | Fri, Jul 3 2009, 14:38 GMT
Forex: EUR/USD rebounds at 1.3980, back above 1.4000
FXstreet.com | Fri, Jul 3 2009, 11:46 GMT
CURRENCIES: Dollar Edges Higher In Thin Trade Ahead Of Holiday
Dow Jones | Fri, Jul 3 2009, 11:46 GMT
Forex: GBP/USD falls further to test 1.6300
FXstreet.com | Fri, Jul 3 2009, 11:20 GMT
2nd UPDATE: UK Service Sector Grows, End Of Recession Nears
Dow Jones | Fri, Jul 3 2009, 10:15 GMT
eurusd, industry, us, recession, gbpusd, stocks, usdjpy
View All
Interested in forex trading? forex brokerage firms!
GET CASH BACK FOR YOUR TRADES! Learn more about the Pip Rebate Program
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. FXstreet.com has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.
Any opinions, news, research, analyses, prices or other information contained on this website, by FXstreet.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXstreet.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
©2009 "FXstreet.com. The Forex Market" All Rights Reserved.