Dealers settle chemicals parent company's credit auction

Dealers today took part in an auction to settle credit derivative trades referencing LyondellBasell Industries. The final price was determined at 2. The first phase of the auction saw an inside market midpoint of 3.375.

The largest physical settlement offer came from Deutsche Bank at €138 million, followed by Credit Suisse which offered €21 million. The largest bid, on the other hand, came from JP Morgan at €47 million. Net open interest was €95.245 million to sell.

LyondellBasell's US operating arm, Lyondell Chemical, had its credit auction on 3 February. Its final price for credit default swaps was 15.5, and its loan-only CDS was settled at 20.75.