02 June 2015 by lberuti
Macro considerations are still driving most of the trading. The story of the day was the 17bps jump in European interest rates. So plummeting Bunds were back on the radar screen along with Greek concerns, regarding which we await comments following new proposals each side allegedly made to the other during the last 24 hours. Understandably, trading on single name reference entities is scarcer, but there are still pockets of activity. Today for instance, telcos provided some animation. SBC ( AT&T Inc. ), whose 5 year CDS is worth 69bps, were said to seek to establish a foothold in Brazil. As the only way to get a piece of the action is to buy an existing operator, firms with Brazilian assets were brought into play. Despite the speculative nature of the information at this stage, PORTEL’s 5 year risk premium traded 36.5bps tighter at 431bps and TITIM’s ( Telecom Italia Spa ) traded 7bps tighter at 147bps.