CDS Markets stabilizing

Discussion in 'Wall St. News' started by ASusilovic, Aug 6, 2007.

  1. The iTraxx Crossover Index, which tracks the 50 most-liquid names in the mainly high-yield sector in Europe and is considered the key indicator of sentiment for credit default swaps, was trading at 420 basis points, or a cost of €420,000 annually to buy protection against a company defaulting for every €10m of debt over five years. This was 12bp wider on the day.

    he iTraxx Europe index, which covers the 125 most-liquid names in the investment grade sphere, was also trading slightly wider on the day at 61bp after opening at 60bp

    One trader said the Crossover index had ranged between 408bp and 425bp on Monday, which is relatively stable compared with last week’s roller-coaster ride.

    => BUY FINANCIALS!!! :p