Loan-only credit default swap spreads widened 15 to 30 basis points across the board last week because of the volatility in the stock markets, said a trader. Names that traded wider include NRG Energy, which saw its spreads widen 20 basis points to the 105-120 context. The LCDS on Georgia-Pacific, Smurfit-Stone Container Corp. and DaVita also widened. "Generally the market is softer," said a trader. "People are more cautious. There are more buyers of protection with the stock markets down, interest rates higher and high-yield bonds down."
LCDS Spreads Widen On Choppy Stock Market