Credit Risk Falls as Greek Optimism Adds to Obama’s U.S. Victory
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Credit markets rallied for a second day in Europe as Barack Obama was re-elected U.S. president and investors speculated that Greece will meet conditions for the next instalment of its bailout.
Sanofi, France’s largest drugmaker, Dutch energy companies Enexis Holding NV and Alliander NV and U.S. construction-equipment maker Terex Corp. were among issuers taking advantage of the boost in sentiment to sell bonds. The Markit iTraxx Crossover Index of credit-default swaps linked to the debt of 50 mostly junk-rated European companies fell two basis points to a more than two-week low of 505 as of 12:06 p.m. in London.