US corporate credit default swaps rose today as yesterday’s Ecofin meeting did not provide concrete consensus on how the Greek debt saga should be tackled. However, markets are expecting that Greece will eventually get its funding for the short term. Having said that, the market seems to be concerned that Greece will not make the grade in 2013 and therefore, the issue of Greek exit will be back on the table eventually. For the time being, we have to live with the more of same scenario as politicians continue to disappoint.

Earlier during the day, Treasuries rose on the back of pessimism coming out of Europe. However as the session progressed, Treasuries fell pushing yields to an almost two week high on the news that US initial jobless claims fell last week,

One can notice that while this volatility effects stocks drastically on the slightest pessimism, corporate credit is not as drastically affected. This asset class continue to outperform. Credit Secondary markets saw a slight increase in volume today with spreads inching tighter along the way. Volumes for the rest of the week are expected to be light as the US market will be closed tomorrow for Thanksgiving.