iTraxx SenFin tightens post-ECB

Paola Lamedica
By Hazel Sheffield, Rob McGlinchey
05 Jun 2014

The Markit iTraxx Senior Financials index tightened 4 basis points to 68bps on Thursday after the European Central Bank cut interest rates to combat low inflation and drive growth in the Eurozone. The move by the central bank followed increased flow in the index with hedge funds buying receivers and selling payers on the underlying.

The flow from the hedge funds was mainly driven by the expectation that the ECB would announce a long term refinancing operation on Thursday, therefore boosting liquidity in Senior Financials. At a news conference on Thursday, Mario Draghi, president of the central bank, said the ECB would initially ...

Already a subscriber?

Continue reading this article

Try full access to GlobalCapital

Free trial