12 June 2014 by HCM
Credit markets traded mainly sideways today. Daily variations on the indices were minimal and fair values did not move much either. If you add to that the fact that there was hardly any idiosyncratic news, one would expect individual variations to be contained. And still some names have been pushed around, experiencing meaningful variations. Nevertheless, trading volumes were not huge on these, and most of them are found among the new constituents which entered iTraxx Crossover during the last roll. It mostly shows that liquidity on these newcomers to the CDS market is still a bit patchy. If there is no big general market move, you need to cross the bid-offer to move a position, hence creating some noise in the price time series.