Where stock markets are victim of hedge funds and leveraged ETF's, credit markets are less impacted by this kind of manipulations, but both markets go down the same way: deep south.
The cost of protecting European debt becomes more and more expensive. This cost is measured by the iTraxx-indices.
The Markit iTraxx Crossover index of mostly junk-rated corporates widened to 1123 basis points, meaning it costs €1,123,000 annually to purchase five years of protection on a notional amount of €10m. A premium which have to be paid every year.
The iTraxx Europe index of mostly investment grade names - seen as a useful indicator of credit sentiment towards the continent’s banks - widened by 4.2bp to 193bp.
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The Markit iTraxx Crossover index of mostly junk-rated corporates widened to 1123 basis points, meaning it costs €1,123,000 annually to purchase five years of protection on a notional amount of €10m. A premium which have to be paid every year.
The iTraxx Europe index of mostly investment grade names - seen as a useful indicator of credit sentiment towards the continent’s banks - widened by 4.2bp to 193bp.
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