Credit Market Analysis
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Credit Market Analysis > Latest Notes
Some defiance at last!
20-30bp is the new 10-15bp... That was a good second half of the week and gives us a platform to rescue performance as we close in on the end of this month. Fresh record-high stocks in the US were the principal take away, but we in the corporate bond markets will be feeling relieved that the supply situation has perked up. And the information ratio we have managed to obtain [...]
The future is bright for credit
Scene set for a squeeze in spreads... Could it be that credit spreads are set for a squeeze tighter through the remaining months of this year? One of the features of the supply seen this month is that books have been oversubscribed by a considerable margin, and deals have been able to be priced tighter by more than the average seen previously this year. The clamour for non-f [...]
Fixed income feels the chill
Rates are the story... The only market bursting out of the blocks is the rates one, that is, with yields heading higher and close to setting the highs for the year in the US (10-year), while the 10-year Bund yield up at close to 0.50% is still 27bp short of its highest level for 2018. The direction of travel for both markets at the moment is the same - higher in yield terms. [...]
One hand giveth…
The other taketh away... Deals galore littered the primary markets in one of the heaviest sessions for a while - most likely this year so far in terms of the number of issuers. There was SSA issuance, covered bonds, IG and HY corporates, senior and subordinated financials and in dollars, euros and sterling currencies. So we worked through a busy session. IG non-financial dea [...]