Archive

Monthly Archives: March 2018

28th March 2018

There may be trouble ahead

Emerging markets to lead the way, again… It’s not lost on us that USD 3-month Libor has doubled in the last 12 months from 1.15% to 2.30%, and it is going to heap (if it isn’t already) much pain and misery on dollar funders, especially. Refinancing – which tends to be shorter-term in Asian markets, is […]
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27th March 2018

F.O.M.O

So near, yet so far away… Fear of Missing Out. There’s little else to explain the 2%+ rally in European equities at the open. And it is probably as good a reason as any in which to get involved! The US equity markets rallied hard the previous session on some sort of relief trade following […]
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26th March 2018

About…. turn!

That’s that, then… Just when we thought 2018 was going swimmingly well with global macro in firm recovery mode, allowing policy accommodation to be withdrawn more rapidly amid some signs of much-needed inflation (and finally leaving us with the re-emergence of a proper economic cycle) a big blooper hits us. All that upside was anticipated and […]
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22nd March 2018

Markets befuddled

In need of some TLC… Credit is failing to shake off the cobwebs of an uncertain start to the year in all areas of the corporate bond market. There’s lethargy about the primary and secondary markets while credit spreads are now in ‘drift’ mode. The market was temporarily awoken from its slumber last week after the […]
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21st March 2018

Primary needed to alleviate the tedium

Issuance drop a concern… A pre-Easter flurry, with effectively six sessions left in which to get some business done before we see out the quarter, could see €5bn – €10bn of IG non-financial issuance. Up to €2bn in high yield would be absorbable, while anything the senior and subordinated bank debt market throws at us […]
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20th March 2018

Throw the book at them

Facebook sullies the mood… The big Facebook-driven drop in US equities on Monday put a dampener on Tuesday’s session. We were left treading water as we attempted to take stock of the damage caused. With the FOMC up next, it’s a nailed on certainty to be a another very quiet session on Wednesday. Good news […]
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19th March 2018

Bulletproof primary credit

Shrugging off equity weakness… There’s a sense of pragmatism running through the primary markets. We had a well-deserved day off on Friday following a heavy couple of sessions. But the indigestion has soon passed and we were printing deals in Monday’s session even as equities took a tumble amid the usual machinations around fears of […]
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18th March 2018

Yes, we can!

And we will… Just about €17bn of IG non-financial corporate bond issuance last week after just €5bn in the opening week and a half of March, and of course the market was going to feel a bit of indigestion. We wouldn’t necessarily think that there was a material push back by investors, but a short […]
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15th March 2018

New deals effortlessly absorbed

Anyone for a Cartier… We were again furnished with plentiful issuance across a wide range of corporate sectors which took in non-financials, financials (senior and subordinated) and the real estate sector. The deals kept the corporate bond market fully engaged. Elsewhere, equities traded in mixed fashion before receiving a late push higher, rate markets close […]
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15th March 2018

Primary market re-opens proper

Don’t worry about it… The corporate bond market was squarely focused on the blockbuster Sanofi offering and single-handedly almost doubled the amount of issuance seen this month. Macro focus was that poor Eurozone industrial production figure for January, as Draghi spoke about the need to be ‘patient, persistent and prudent’ on ECB policy. The UK […]
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