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The Euro sculpture is seen in front of the European Central Bank in Frankfurt, central Germany. Germany’s annual inflation rate rose for the first time in four months in December.
The Euro sculpture is seen in front of the European Central Bank in Frankfurt, central Germany. Germany’s annual inflation rate rose for the first time in four months in December.
(MICHAEL PROBST/AP)

Bulls surface in Europe’s credit markets

The numbers out of Europe’s economies are ugly, and yet the credit market for European companies is looking its best in months.

European credit investors are either feeling the most optimistic they have in two years, or they are just so flush with cash that they are buying anyway.

Tracking firm Markit points out that the iTraxx Europe index of corporate credit default swaps is trading at the lowest premium since May 2011, at under 100 basis points. That means that the price of buying insurance against corporate default, as measured by that index, is the least in two years.