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Credit Swaps in U.S. Snap Two-Day Fall; Ardagh Group Plans Bonds  

January 30, 2014
Jessica Summers, Bloomberg

A measure of U.S. corporate credit risk snapped a two-day decline before the Federal Reserve’s decision on monetary stimulus amid turmoil in emerging markets. Ardagh Group SA is planning to sell $830 million of bonds.

The Markit CDX North American Investment Grade Index, a credit-default swaps benchmark used to hedge against losses or to speculate on creditworthiness, rose 3.2 basis points to 72.2 at 12:40 p.m. in New York, according to prices compiled by Bloomberg. The gauge reached a two-month high Jan. 24.

The Fed ends a two-day policy meeting today with economists projecting a further reduction to its bond-purchase program that has boosted credit markets. Emerging-market currencies declined as an increase in interest rates by central banks from Turkey to South Africa failed to prop up the units of developing nations.

Read more: Bloomberg

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