The European credit derivative markets have started to show some signs of price stability after a turbulent two weeks, as a drop in crude oil prices helped to calm investor sentiment ahead of banks reporting second quarter results and the release of key US inflation data.
The Markit iTraxx Crossover index, which comprises the credit derivatives trading on the debt of 50 mostly sub-investment grade rated companies, was at 553 basis points when European market opened this morning â only 1 basis point wider that at the close last night.
