14 January 2014 by HCM
Protection for Credit Indices begun the day very well bid on the back of a weak US close and a weak Asian session. For instance, the iTraxx Main (ITXEB20) traded 2bps wider (or nearly 10 cents in cash price) right out of the gate. The broader market of single name CDS swiftly followed, and credit moved wider in unison. But during the afternoon, while there was still a nagging bid for single name protection, some hedges put on last week on indices came out and indices outperformed their theoretical value across the board.