19 June 2014 by HCM
The performance of Itraxx Crossover constituents was impressive today. None of them saw its risk premium increase during the session. Investors took heart from the comments made yesterday by the FED chair Mrs Yellen that interest rates will stay rock bottom for the foreseeable future, and from the roll which will take place tomorrow on single names and which will introduce September 19 as the new “on-the-run” maturity for 5 year CDS. Despite that, it was still possible to identify a couple of standout outperformers. PORTEL (Portugal Telecom) ’s 5 year CDS closed 33bps tighter at 203bps on the back of its rating upgrade by Moodys to Baa3 late yesterday. SUNCOM’s 5 year CDS closed 41bps tighter at 240bps after overnight reports that CVC, its sponsor, could be looking for an exit, either via an IPO or through a merger with Orange.