CDS: The tightening trend in European credit indices was briefly interrupted in the middle of March, when geopolitical fears about Ukraine intensified. Several days of weakness followed, as the iTraxx Europe Main and Crossover indices widened by 4 and 20 basis points respectively. They then retraced equally quickly into the March 20 roll. The subsequent spread tightening saw key resistance levels of 70 basis points and 250 basis points broken, with the momentum continuing into month end. Financial indices performed in line with 5 basis points of SEN/SUB decompression throughout the month in Series 20.
Cash: In the Telecommunications/Media sector, Vodafone confirmed the acquisition of Spanish cable
company Ono for €7.2bn, which includes €3.3bn in debt. The deal marks the latest move in Vodafone’s strategy to add fixed-line networks to augment its mobile services. Mid asset swap spreads for the company’s 4.65% 01/22 bond widened by 8 basis points during March.
Moving to high yield, Piraeus Bank became the first Greek bank to access debt capital markets since
the eurozone crisis erupted five years ago. Its March 18 launch of a three-year senior unsecured bond was six times over-subscribed. In the secondary market, the bond’s mid asset swap spread widened as far as 409 basis points on March 27, before tightening back into ASW 401 by month end.
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