CDS update: Jittery trade as spreads inch wider

The market for credit default swaps vacillated between cautious optimism and outright pessimism on Tuesday, as traders pondered the implications of In the US, the investment grade Markit CDX NA 10 index traded as wide as 151.04 basis points but by lunch time in New York had retreated to 146.97bp, marginally tighter than Monday’s close. Across the Atlantic, the Markit iTraxx HiVol index reached its widest level since its roll in March, as all but one of the underlying constituents widened, according to Markit analyst Gavan Nolan: The building materials sector, one of the worst performers in recent weeks, suffered disproportionately, with Saint Gobain’s spreads exceeding record wides reached in March. Unsurprisingly, retailers such as Next and Marks & Spencer were also among the widening credits. A British Chamber of Commerce... [read full story]