April saw a continued positive shift in the difference between credit default swap (CDS) spreads and cash spread equivalent, known as the CDS-bond basis, among US dollar denominated corporate bonds.

Calmer global markets and stronger oil and commodity prices encouraged continued recovery in battered bond prices in the oil & gas sector, with EQT Corp and Enbridge Energy Partners LP almost wiping out their large negative CDS-bond basis positions accumulated over the past year.

The CDS-bond basis