CDS changes prop up Senior Financials index

摘要

The benchmark index for senior European bank debt proved resilient during the recent market choppiness, even as bank shares and non-financial credit markets sold off, in a move that analysts are attributing to the forthcoming changes to credit default swap contracts. The iTraxx Senior Financials index hit a multi-year low of 78bp on April 23, having traded as wide as 101bp in late March. Despite widening at the end of last week, the index is still 10bp tighter than a month ago at 78bp.