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European Junk Credit Risk Drops to Lowest Since April 2022
A gauge of credit risk for Europe’s junk bonds has dropped to the lowest since early 2022 as global markets rally on bets that interest rates globally have peaked. The Markit iTraxx Crossover Index has dropped to 374.86, its lowest since April 2022, according to data compiled by Bloomberg. A similar gauge tracking European blue-chip company default insurance costs has fallen back as well and is near its lowest in more than 18 months. At this level, the index is well below a March high of more than 500 bps when a global banking crisis roiled markets. The gauge tracking high-grade firms’ CDS has eased to around 67 ... (full story)