Euro credit default swaps fall ahead of Fed rate decision
On September 17, ahead of the widely expected Federal Reserve rate cut on Wednesday, European credit default swaps (CDS) declined. Richard Flax, Chief Investment Officer at Moneyfarm, said in a report: "The market sentiment has clearly improved due to the high expectations of a Fed rate cut." S&P Global Market Intelligence data showed that the iTraxxEuropeCrossover index, which tracks high-yield European CDS, fell 5 basis points to 285 basis points, while the iTraxxEuropeMain index, which tracks investment-grade European CDS, fell 1 basis point to 53 basis points.
