Summary

  • The rally is back and spreads have moved substantially tighter
  • GM filed for chapter 11 – muted reaction in the credit market
  • In Denmark and Sweden the central banks have published their biannual stability reports

Headlines from the credit market this week

CDS indices are tighter compared with last week. The investment grade index, iTraxx Europe, currently trades at 107bp compared with 122bp last week, while the high yield index, iTraxx Crossover, trades at 680bp down from 727bp. Thereby credit continues to rally despite the chapter 11 filing by General Motors. In the primary market the high activity continues. From the Nordic region Handelsbanken came to the market with a USD senior issue.