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Daily Archives: 8th January 2019

8th January 2019

Be good if it lasts…

iTraxx Main

85.8bp, -2.7bp

iTraxx X-Over

345.2bp, -12.1bp

🇩🇪 10 Yr Bund

0.23%, +1bp

iBoxx Corp IG

B+180.6bp, +1bp

iBoxx Corp HY

B+526bp, -10bp

🇺🇸 10 Yr US T-Bond

2.71%, +3bp

🇬🇧 FTSE 100

6050.59, (+0.31%)
🇩🇪 DAX

12687.53, (+0.10%)
🇺🇸 S&P 500

3360.47, (+0.20%)

Market feeling replete…

Few will find reason to argue, but Tuesday’s session was a bullish one for the most part. And just as it needed to be, as it allowed the high yield primary market to reopen with a blue chip (offshoot) entity of a peripheral company. Just as we called it – and Telecom Italia Mobile was the borrower. Primary was raining deals again, with IG non-financials seeing a multi-tranche, dual currency effort from Orange SA, a dual tranche from Emerson Electric and then several senior financial offerings. All being told, primary is delivering but we are not sure it is being necessarily helpful.

The deals are cheap but there is a repricing impact and what’s more, the deals are not nailed certainties to tighten on the break. The market is a little dysfunctional at the moment and needs little more time to play out. So, there is not much – if any – performance in the new deals, while existing holdings are marked much wider thus hammering net asset values.

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