Credit Market Analysis
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Credit Market Analysis > Latest Notes
Opening heading We have hurtled towards a great first half of 2019. IG credit is up 5.5% (iBoxx index), HY credit returns have exceeded 7% and the CoCo market is close to delivering 10%. Even after some recent weakness, the total return Dax index has returned almost 16% and the S&P index is up by over 16%. IG spreads are 47bp tighter year to date, the CoCo index has tigh [...]
Fixed… income, really!
Snoozing to the halfway point... It looks as if the G20 meeting has come at just the most opportune of times, clearly leaving the markets unwilling to take a significant directional view as investors wait to see how any meeting between Trump and Xi turns out. We're not quite treading water in the strictest of interpretations, but risk markets are not doing too much while [...]
Bandwagon rolls on
Opportunity to jump on... We're in bandwagon territory, but few are neither advocating or thinking of getting off it. In fact, the thinking is that there is more to go and there's a quite a scramble to get on board. Equities are close on 20% higher this year, fixed income in its safest form has given almost 6% and even Bitcoin is up at or near $11k a coin. Not bad. Governmen [...]
Let the music play on
The Dax is up almost 19% and the S&P500 has risen by around 17.5% (setting record highs for the S&P/Dow in the process) but there is also a great story in fixed income. We struggle to find a time when Eurozone bonds (iBoxx index) have returned, in any period, anywhere close to 6% - let alone exceed that number. In credit, the AT1 sector takes the plaudits, with retu [...]