Five-year credit default swaps covering French debt have risen to a level not seen since January, according to Markit Group. The increase comes as investor sentiment is weighed down by election concerns. "Both candidates are taking an increasingly isolationist view, and investors may well be looking to hedge some of that risk in the CDS market," said ICAP analyst Chris Clark. "Unless the tone of the contest shows some sign of change, we may well see continued widening in spread levels."

Related Summaries