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Daily Archives: 19th July 2018

19th July 2018

Few will be getting rich(er) this summer

MARKET CLOSE:
iTraxx Main

65.7bp, +1.7bp

iTraxx X-Over

296.7bp, +4.9bp

🇩🇪 10 Yr Bund

0.33%, -1bp

iBoxx Corp IG

B+131bp, +0.5bp

iBoxx Corp HY

B+390bp, +1bp

🇺🇸 10 Yr US T-Bond

2.85%, -2bp

🇬🇧 FTSE 100

,
🇩🇪 DAX

,
🇺🇸 S&P 500

,

Feeling content, though…

The week just gone is likely going to be a flavour of what to expect over the next few to come. Everything pretty much rangebound, that is. In primary, it will be the offering of the odd deal – and that includes those which require a little more effort like from the high yield market.

Equities will not be doing too much unless a major crisis erupts, but the upside is fairly limited, we would think, for the next few weeks even if (as expected) the second quarter earnings season delivers. In secondary credit, we are looking for a moderate tightening through the next six weeks, hopefully coming off the back of those rangebound equities and absent any material event risk. Even swap rates are close to flatlining, with the 5-year rate in a 3bp range and the 10-year only in a 4bp range over the past 5 weeks.

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