It has been a relatively quiet week in the credit market. CDS indices are largely unchanged. The Senior Loan Officer Survey from the Fed suggests a light at the end of the tunnel in terms of lending standards. In Sweden, more details have been provided on conditions for the recapitalisation of banks. Finally, Banco Sabadell has decided not to call a LT2 bond.
CDS indices have remained more or less unchanged during the week and volatility has been smaller than what we otherwise have grown used to. The investment grade CDS index, iTraxx Europe, is currently trading at 157bp unchanged from last week. The high yield index, iTraxx Crossover, is also unchanged and currently trades at 1050bp.
