23 May 2017 by lberuti
The dramatic events that took place yesterday night in Manchester had no bearing on the market this morning. Credit indices opened unchanged across the board and trended tighter – albeit very modestly – throughout the session. Interest rates, currencies and commodities were stable and cues were taken from companies’ results, which were mostly on the bright side, particularly as far as iTraxx Crossover constituents were concerned. Investors welcome the deleveraging efforts of CAREUK (Care UK Health and Social Care Plc), which serves patient in the UK and announced a net leverage decrease to 6.14x from 6.86x at the end of the previous quarter, and of GFKLDE (Garkunkel) – the debt collector -, which lowered its net leverage by 0.2 turns compared with last quarter at 4.7x. CAREUK was rewarded with a 55bps tightening of its 5-year risk premium to 406bps, while GFKLDE saw its 5-year risk premium tighten by 25bps at 506bps.