Secondary activity slows but spreads stay mostly unmoved

By Joseph McDevitt
31 Jan 2014

Trading activity in the secondary securitization market slowed this week as buyers and sellers went into wait-and-see mode because of volatility in credit markets. But spreads for bonds were unmoved, with traders saying a sell-off was unlikely.

“It would have to get quite a bit worse before we see anyone wanting to sell,” said one London-based ABS trader. “It feels like the credit markets have stabilised for now after a difficult start to the week.”

Bankers blamed the volatility for Volkswagen having to pay a ...

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