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Daily Archives: 20th January 2019

20th January 2019

Markets have their mojo back!

MARKET CLOSE:
iTraxx Main

76.2bp, -2.3bp

iTraxx X-Over

321.2bp, -8bp

🇩🇪 10 Yr Bund

0.26%, +2bp

iBoxx Corp IG

B+171bp, -2.5bp

iBoxx Corp HY

B+496bp, -5bp

🇺🇸 10 Yr US T-Bond

2.79%, +4bp

🇬🇧 FTSE 100

5563.74, (-5.25%)
🇩🇪 DAX

9815.97, (+1.90%)
🇺🇸 S&P 500

2626.65, (+1.89%)

And credit shakes-off its New Year hangover…

Following a relatively inauspicious start, corporate bond market investors have got their trotters on and their zest for risk. It’s been a delayed reaction for investors to get involved and the small amount by which they are, is enough to have spreads start to claw back those earlier New Year losses. IG spreads are back to flat for the year. There might be something in it that primary, while up and running, hasn’t been as effusive as many would have thought. Or, we haven’t yet had that ‘jumbo secondary repricing’ deal which has all and sundry running scared. Whatever, there has been an abrupt turn in spread direction following several sessions of stability following some significant weakness. Most risk markets are showing positive returns so far this year, and now credit is, too.

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