Credit Traders Unwind $20 Billion iTraxx Europe Short, Turn Long
Updated
Updated · Bloomberg · Jun 12
Credit Traders Unwind $20 Billion iTraxx Europe Short, Turn Long
1 articles · Updated · Bloomberg · Jun 12
Summary
$20 billion in short positions tied to the Markit iTraxx Europe investment-grade CDS index has been unwound, with traders now holding outright long positions.
DTCC data compiled by Barclays showed investors abandoning hedges that had built up over recent months as a wartime protection trade on European companies.
The shift marks a sharp reversal in sentiment toward European corporate credit, moving from downside insurance to positioning for tighter spreads.