Credit spreads witnessed the first day of widening Tuesday since the Federal Reserve's rate cut Sept. 18. The iTraxx Crossover index, which is widely seen as a barometer of market sentiment and tracks the cost of insuring against default on a portfolio of 50 mostly sub-investment grade European borrowers, moved out by almost 20 basis points to as wide as 320 basis points before closing at 314 basis points. Turning to the broader secondary market, credit spreads opened tighter Wednesday morning, reversing Tuesday's widening after U.S. stock markets closed Tuesday's session mixed to higher.
