Credit Market Analysis
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Credit Market Analysis > Latest Notes
CoCo pops up | Bank Capital Insights
CoCo index is up 3% YTD.. and it is just 20 days in the new year So, AT1 bonds have generically rallied 3 points or so but some bonds are up 4-5 points in a very short period and given the cash prices (low to mid 80s) it translates to a 5% return. All this in the first 3 weeks of this year and almost half the returns (10%) I had penciled in this for the entire year. Wh [...]
Markets have their mojo back!
And credit shakes-off its New Year hangover... Following a relatively inauspicious start, corporate bond market investors have got their trotters on and their zest for risk. It's been a delayed reaction for investors to get involved and the small amount by which they are, is enough to have spreads start to claw back those earlier New Year losses. IG spreads are back to flat [...]
You want yield but from “Almost safe bank”? | Bank Capital Insights
What yields 8.5% YTC and 6% YTP and is issued by the “most defensive” European bank? In the land of the high yielding USD AT1s, a number of issues appear very attractive to own given cash prices and recent sell off. Out of that lot, a couple of issuers stand out given their strong balance sheet, low risk business model and are shielded from most tail risks. One such na [...]
Change in the air…Not
The BoE's Carney was again doing his best to talk up the benefits of no Brexit after that humiliating vote on Tuesday, but that we expect from the establishment. No one knows where this will lead to, but on we go. May's agreed deal with the EU spectacularly failed the Westminster test, just as we expected. On Wednesday she won her vote of no confidence, also as expected [...]