16 January 2015 by lberuti
This Grapple gives you a glimpse of what happened since the beginning of the week. The bigger the rectangle, the busier the name was (the daily volumes are taken from DTCC and actually relate to the week before, ie currently to the week that ended on the 9th January) . Green means a decreasing risk premium, and red means a deterioration in the perception by the market of the credit quality of the mentioned company. First you can see that the bulk of the trading in CDS still takes places in the sovereign space by a fair margin. Then, even though credit is ending the week on a bullish note on the back of headlines regarding Mr Draghi presenting a QE plan to the German government, the brighter spots are red and they are quite numerous. There is no surprise there though, as the names which underperformed are linked one way or the other to commodities: GLEINT ( Glencore Plc ) and AALLN ( Anglo American Plc ) on the back of the volatility which affected metals, and once again the whole energy sector both in the US and in Europe which, despite today’s rebound in oil, which saw petrol trading through the $50/barrel level for the first time in more than 5 years.