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Daily Archives: 7th February 2019

7th February 2019

Grim reaper lurks

MARKET CLOSE:
iTraxx Main

73.0bp, +3.2bp

iTraxx X-Over

317.4bp, +10.6bp

🇩🇪 10 Yr Bund

0.11%, -5bp

iBoxx Corp IG

B+153.7bp, +1.6bp

iBoxx Corp HY

B+483.7bp, +8bp

🇺🇸 10 Yr US T-Bond

2.66%, -4bp

🇬🇧 FTSE 100

6176.19, (+1.33%)
🇩🇪 DAX

12799.97, (+1.32%)
🇺🇸 S&P 500

3185.04, (+1.01%)

Limp credit markets…

It’s been the limpest of weeks as far as activity has been concerned, although for credit market participants they’re at least grateful for the squeeze in spreads which has given some excellent early year performance. We’re not buying into the excuse that the earnings season has curtailed primary activity, because only a small proportion of companies are currently in blackout. However, that lack of deal flow is directly responsible for the huge squeeze in spreads, as is traditionally the case that investors have plenty of cash to invest so early in the year – and want to put it to work. It helps also that equities are holding steady, up by 6% or so and weakening macro is keeping duration supported with market yields anchored at low levels.

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