12 May 2015 by lberuti
As far as credit is concerned, despite some volatility, last week has not brought any major change. Utilities for instance were stable as a whole in Europe (you can see that the green candle is actually flat), but, within the sector, performance has varied greatly. Indeed, political issues have come back to the forefront in various countries, with a strong impact on a few names. In the UK, all eyes were on the outcome of the general election. With the election of a Conservative government, UK utilities reacted positively: the proposed power price freeze by the Labour Party leader had unsettled investors during the run-up to the poll. CENTRI’s ( Centrica Plc ) and UU’s ( United Utilities Group Plc ) 5 year risk premia tightened 6.5bps to 66bps and 1.5bps to 86.5bps respectively. At the other end of the spectrum, the never ending Greece saga continues and growing fears over the future of the country’s debt clearly did not help peripheral players. ELEPOR ( EDP - Energias De Portugal SA ) was the worst performer of the sector, and its 5 year CDS widened by 4bps to 133.5bps.