Fitch: High Spreads & CDS Market Volatility Point to Widespread Concern (Business Wire)

Monday August 11, 10:02 am ET NEW YORK--(BUSINESS WIRE)--Ongoing volatility in the credit default swap (CDS) market combined with higher spreads indicate continued widespread concerns related to both financial and non-financial services sectors, according to a Fitch Ratings in a new report. 'The combined effects on the economy of the depressed housing market, the credit crisis in general and higher energy prices have led to concerns about an increase in the corporate default rate,' said Managing Director James Batterman. 'The result has been sharply higher spreads compared to early last year, which is indicative of the consensus view of further challenges ahead.' Fitch's review examined changes in spreads and trade volumes by industrial sector for both US and Euro denominated CDS, and highlights the extent of trading activity... [read full story]