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No End In Sight For Dispersion

09 March 2015 by lberuti

For the market as a whole, the session felt like a walk in the park, and failed to provide much excitement. After a quick wobble at the open following the weak close in the US on Friday, sellers of protection rapidly emerged (they probably took comfort in the effective start of QE which sent bund 1 figure higher) and capped any index widening, making sure that the trading range remained narrow. It was a fairly different story if you go into the details though. The constituents of iTraxx Crossover for instance experienced very different fortunes. While PIZEXP’s (Pizza Express) was 27.5bps tighter at 398bps on the back on the results it published today, other names were marked substantially wider. The difficulties currently met by the Greek government in their debt negotiations with the Eurogroup and the mention of early elections in the week-end press affected Greek companies. OTE ( Hellenic Telecommunications Organisation SA ) saw its risk premium widen 35bps to close at 407bps and PPCGA (Public Power Corporation) saw its risk premium widen 1.75pts to close at 17.75pts upfront. These 2 names led the underperformers’ pack.