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U.S. Credit Swaps Index Declines, Bombardier Plans Debt Offering 

April 3, 2014
Mary Childs, Bloomberg

A benchmark gauge of corporate credit risk in the U.S. declined as Federal Reserve Chair Janet Yellen said the economy will need further support and speculation grew that tensions in Ukraine are easing. Bombardier Inc. plans to sell $1.8 billion of debt in two parts today.

Series 22 of the Markit CDX North American Investment Grade Index, which started trading March 20, decreased 1.4 basis points to 69.1 basis points at 5:18 p.m. in New York, according to prices compiled by Bloomberg. The index is a credit-default swaps gauge used to hedge against losses or to speculate on creditworthiness.

Yellen said “considerable slack” in the labor market is evidence that the central bank’s unprecedented accommodation will still be needed for “some time” to put Americans back to work. Further stimulus from the Fed, which would boost investors’ risk appetite, is a boon for corporations seeking to refinance debt cheaply. 

Read more: Bloomberg

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