US CREDIT-Derivatives seen better bet than corporate bonds

(Reuters) - "Judging by the gyrations of the spread, one would think we are staring into
an abyss," Citigroup analyst Mikhail Foux wrote in a report
sent on Monday. "It's hard to remember the last time its move
was so abrupt."




The derivative index widened to as far as 52 basis points
last Tuesday on rising concerns about weakness in some
residential mortgages extending into corporate credit, but has
since retraced to around 43 basis points.


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