Credit Derivatives Research has reported that European financials outperformed their US counterparts in the credit market this past week (Wednesday to Wednesday). Deemed to be 25% less risky than US firms, differentials expanded by 30 basis points between US and European members of the CDR counterpary risk index.

Barclays was the best performer with spreads tightening 118bp. Citi’s complications involving Wachovia/Wells Fargo was the backdrop to its 51bp widening, making it the worst performer. Generally, high levels of risk premia were observed amongst major global OTC counterparties, moving the CRI between 365bp and 330bp.