Corporate bonds walloped as virus sell-off surprises

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By Mike Turner
27 Feb 2020

Corporate bond spreads swung wider again on Thursday, surprising some investors and bankers with the severity of the moves, after they thought investment grade credit had dodged some of the biggest hits when global securities started plunging at the start of the week.

"It's a real bloodbath today," said a syndicate banker. 

The Markit iTraxx Europe Main credit default swap index is 7bp wider this week, while the Crossover has slipped more than 20bp.

"It's taken us back a bit," said an investor. "We knew there had to be some lag between what ...

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