Anousha Sakoui
CDS report: clawing back the losses
European credit derivatives markets were in recovery mode on Friday morning. Despite the shock of yesterday’s news that the UK could lose its triple-A rating, indices across the board in Europe tightened.
CDS report: go go credit markets
Credit derivative markets in Europe were just a touch tighter on Thursday morning following stocks as traders squared up positions for the end of the month and the holiday weekend.
Jim Reid, credit strategist at Deutsche Bank said the pace of contraction appeared to have eased in the US,
CDS report: fearless in credit
Swine flu pandemic fears failed to hold back credit markets on Wednesday morning, with CDS screens emitting a green glow all-round. As some analysts predicted, flu fears may have only had a temporary dampening effect on markets with credit markets following equities’ rally.
CDS report: the worries mount up
The screens of European credit derivatives traders were splashed with red on Tuesday, with indices showing deteriorating conditions across the board.
The European iTraxx main index of mostly investment grade borrowers’ CDS - contracts which provide a form of insurance against default – moved from a 151.94 basis points close on Monday to as wide as 154.42bps during morning trade.
CDS report: Pigs might fly
Credit derivatives markets were slightly wider Monday morning, with the potential spread of swine flu dominating headlines. But the flu is one of many potential pieces of negative news this week, including the results of the bank stress tests and GM’s restructuring,
CDS report: Credit unmoved by equity rally
European credit-derivative markets failed to follow the joy that pushed equities higher on Friday morning.
The European iTraxx Crossover index of mostly junk-rated borrowers’ CDS — contracts that provide a form of protection against default on debt– were relatively unchanged,
CDS report: Cash credit shows real deal
Credit derivatives indices in Europe have not moved greatly on Wednesday morning, though cash credit spreads declined.
“Indices are not a proxy for the wider market currently, as cash credit is tighter and there is no let up in demand for cash assets,”
CDS report: Banks good, industrials bad
Credit derivatives markets were buoyed by Goldman Sachs’ numbers, with traders hoping that they may be a sign of a fundamental improvement in the banking sector.
As the earnings season kicks off in earnest for non-financial companies,
CDS report: Wider across the board
European credit derivatives markets made a poor start to trading on Tuesday, with spreads on CDS for single names in the defense industry a particular weak spot.
The CDS on BAE Systems widened 9.3 per cent to 134.3bps,
CDS report: The markets are for turning
European credit-derivative markets had another weak morning on Wednesday, following falling equity markets, and growing concerns that the credit markets could deteriorate.
Willem Sels, credit strategist at Dresdner Kleinwort, believes the relative out-performance of credit markets versus equity markets in the past couple of months is fading.
CDS report: Bouncing back
European credit-derivative indices bounced back on Tuesday along with equity markets, although some analysts said the move was predictable following Monday’s sell-off. The day, nevertheless, is expected to be relatively quiet.
CDS report: Monday credit blues
Credit derivative markets started the week with a clear lack of conviction trending weaker, although not to the same degree as equity markets.
Worries about bank capital remained the leading concern,
CDS report: Europe rejoices
European banks were some of the better performers in European credit derivatives markets on Tuesday, following the announcement of Tim Geithner’s public private toxic asset plan on Monday.
ABN Amro Bank CDS was tighter by 8.6bp at 99.125bp;
CDS report: Credit markets rollin’
Europe’s credit derivatives indices rolled today, with the launch of the new iTraxx series 11 replacing many of the index’s underperforming names. As a result Europe’s crossover index of mostly junk rated borrowers’ CDS was being quoted at a mid-price of 920bp on this quiet Friday morning.
CDS report: Markets go into reverse
After an expected bounce in the market for credit default swaps on the back of rally in equities, sentiment in the debt markets has deteriorated.
European credit derivative indices were trading wide of their closing levels on Tuesday.
CDS report: artificial relief
The mood in credit derivatives markets improved on Wednesday, with indices across the board performing better, although some analysts saw the relief rally as artificial on grounds there was still no follow-through buying of cash bonds.
CDS report: pain in the financials (again)
Credit investors are increasingly concerned about the state of the financial sector, demonstrated by record highs in financial sector CDS index spreads on Tuesday morning.
The senior financials CDS index breached record highs,
CDS report: the slide continues
Credit derivative markets in Europe were once again threatening to breach record wides reached Friday. Volumes were muted and activity light on Monday morning but still the tone remains bearish, tracking the equity markets,
CDS report: Fears of systemic risk rise
European credit markets continued to widen on Thursday morning.
The main iTraxx index of investment grade borrowers’ CDS —whose movements are often led by the financial sector — flirted around the psychologically important 200bp level,
CDS report: ugly March
On Monday credit derivative indices across Europe hit levels not seen since mid December on news that distressed insurer AIG was receiving further government assistance and also news that HSBC was issuing an unexpected cash call.
CDS report: Credit in the red again
Tales of woe abound and with that credit markets have once again taken a turn for the worse. A quick look at credit-derivative pricing screens showed big red flashes on Tuesday morning as equity markets plunged.
CDS report: My kingdom for a house!
Sovereign risk proved to be the highlight of the credit markets this week with the perceived worthiness of some leading European nations weakening for the first time.
Credit default swap protection against Austrian sovereign debt was 85 basis points wider in the week,
CDS report: Presidents’ Day calm
London credit derivatives traders reported a relatively quiet morning on Monday, with volumes dampened by the President’s Day holiday in the US. There was a distinct lack of cheer as European credits managed to give up some of the gains they had made over the past week,
CDS report: Issuance keeps lid on market
The recent rally in European credit markets looks like it’s losing a little steam, as companies like VW and National Grid rush to raise money in the bond markets, creating a weight of supply and a lid on any further improvement in spreads.
CDS report: Feel good factor persists
European credit derivative markets extended their rally on Wednesday, taking a key index into territory not seen since early December – despite European equities being broadly down.
A feel good factor has held in the new year - despite some negative fundamentals – with signs of life in the primary bond market.
CDS report: Feelgood factor
A general New Year “feelgood factor” helped giddyup the credit markets, following a positive trail set by equities in Europe.
The iTraxx main European index of leading investment grade borrowers CDS was slightly tighter this morning quoted at 172.19bp,
CDS report: all aboard for 2009
European credit derivative markets were mixed this morning in what has been a subdued start to 2009.
With bankers and investors coming back to their desks there is a lot to look ahead to, a heavy week of economic data to digest and a slew of reports expected from the retail sector in particular.
CDS report: graveyard shift
Credit markets in Europe were exceedingly quiet on Monday amid thin trade ahead of the Christmas holidays, with most investors having closed their books for the year-end.
Some bankers said their phones had not rang at all — although that was to be expected after a busy December,
CDS report: Nervous rally
European credit derivatives markets fared better today, although only a touch in a nervous market.
Eyes in Europe were on the US auto sector. Hopes are fading fast for GMAC: bondholders remain resistant to approving restructuring plans which may well hurt their interests.
CDS report: The trend is your friend
European credit indexes were showing signs of improvement today but still were close to their recent record highs.
This is a surprise to some analysts who highlight indicators that money markets are improving and underlying cash bonds are holding up well.