The extent of the deleveraging in global credit markets was illustrated on Tuesday by the size of a single portfolio being liquidated in the markets, which included $1.5bn worth of global corporate bonds and $3bn in credit derivatives.

Barclays Bank was auctioning the portfolio, according to a number of people familiar with the request for bids, and it was widely believed in the market to be a package of so-called basis trades from a single owner.