Summary
- Spreads have moved sideways during an eventless week
- S&P downgrades UK LT2 debt
Headlines from the credit market this week
It has been a quiet week in the credit market with CDS spreads largely unchanged from last week. The investment grade index, iTraxx Europe, trades at 92bp whereas the high yield index, iTraxx Crossover, trades 610bp. Crossover has outperformed iTraxx Europe slightly during the week.
There have been a couple of new issues during the week including Pohjola Bank from the Nordic region. New issues continue to do well. With the EADS deal that was launched this week we have now surpassed the existing record for yearly new issuance and there are still almost five months until year end.
