Fitch Solutions: Glencore CDS Spreads Spike on Market Concerns
Glencore's CDS are now pricing at the widest levels observed since 2009 and have moved out more than 500% since the start of the year.
"Market concerns for Glencore likely stem from the company's high debt levels amid low commodity prices," said Diana Allmendinger, Director, Fitch Solutions.
Fitch Solutions case studies build on data from its CDS Pricing Service and proprietary quantitative models, including CDS Implied Ratings. These credit risk indicators are designed to provide real-time, market-based views of creditworthiness. As such, they can and often do reflect more short term market views on factors such as currencies, seasonal market effects and short-term technical influences. This is in contrast to Fitch Ratings' Issuer Default Ratings (IDRs), which are based on forward-looking fundamental credit analysis over an extended period of time.
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