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The recent rally in Europe's iTraxx Main and Crossover credit indices has brought them back to within touching distance of the spread levels they held at the roll in to their latest series, before the end of September spike in volatility. But the Senior Financials basket continues to outperform corporate credit, with some market participants describing the offset as a one-way trade.
iTraxx Europe has retraced from 95bp to 78bp since the start of the month - leaving it just 1bp off where the series 24 began at the September 20 index roll. Volatility hit the index towards the end of that...