Improving market sentiment in Europe, notably among sovereigns, led to global credit default swap (CDS) spreads tightening over 2%, according to Fitch Solutions in its latest Risk and Performance Monitor (RPM).
While sovereign spreads globally tightened by 2.9% last week, European sovereigns came in 5.6%, followed by Americas/Oceania 2.3%, and Asian by 1%. "Italy, Germany and Spain are leading the way with significant spread tightening," said managing Director Jonathan DiGiambattista.
CDS performance among financial institutions also saw improvement, with spreads tightening by 2.64%. Once again, European financial institutions tightened the most with spreads coming in 4.7%.
