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U.S. Corporate Credit Swaps Fall; Bonanza Creek Plans Debt Sale 

April 3, 2013
Victoria Stilwell, Bloomberg

A gauge of U.S. corporate credit risk dropped after data showed American manufacturing expanded in March at a smaller rate than the prior period.

The Markit CDX North American Investment Grade Index, a credit-default swaps benchmark that investors use to hedge against losses or to speculate on creditworthiness, declined 0.8 basis point to a mid-price of 90 basis points at 4:20 p.m. in New York, according to prices compiled by Bloomberg. That’s the lowest on a closing basis since traders moved to a new version of the measure on March 20.

The Institute for Supply Management’s factory index fell to 51.3 from the prior month’s 54.2, the Tempe, Arizona-based group’s figures showed today, while the median forecast of economists surveyed by Bloomberg was 54. A reading of 50 is the dividing line between growth and contraction. Improvement in economic data may alleviate investor concern that companies will struggle to repay debt.

Full Article: Bloomberg

 
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