News from Wall Street Journal:

– iTraxx CDS indexes tighter as ECB’s three-year LTRO allotment beats market expectations

– Market still needs to see evidence of economic stabilization

– ISDA to decide Thursday whether restructuring credit event occurred on Greece

(Rewrites throughout, updates levels, adds detail, comment)

By Sarka Halas


LONDON (Dow Jones)–The cost of insuring European debt against default was lower in trading Wednesday as the European Central Bank’s second three-year long-term refinancing operation allotment beat market expectations and boosted sentiment.

The ECB allotted EUR529.53 billion, an amount higher than the EUR489 billion seen in the first LTRO launched in December 2011.

“A high number of banks bid at today’s auction–800, a sign that the ‘stigma’ associated with the auction has somehow dissipated,” says Annalisa Piazza, analyst with Newedge Strategy.

The previous LTRO program, launched in December 2011, was available to banks that wanted to use the money to prevent a cr……….. continues on Wall Street Journal.

Continue Reading …

Related News: