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Daily Archives: 7th April 2019

7th April 2019

Momentum still with risk-on

MARKET CLOSE:
iTraxx Main

60.5bp, -1bp

iTraxx X-Over

253.8bp, -1.7bp

🇩🇪 10 Yr Bund

0.00%, unchanged

iBoxx Corp IG

B+134.6bp, -0.6bp

iBoxx Corp HY

B+415.4bp, -2bp

🇺🇸 10 Yr US T-Bond

2.50%, -1bp

🇬🇧 FTSE 100

5993.28, (-0.37%)
🇩🇪 DAX

11073.87, (+0.07%)
🇺🇸 S&P 500

2955.45, (+0.24%)

Steady as she goes …

The opening week of April has delivered in the same fashion as the opening quarter, for credit. Primary is churning out deals and the receptivity towards new offerings remains robust with investor interest at very high levels. Credit spreads continue to tighten at a rate of knots, showing little sign (no sign) of wanting to back-up with 6bp of IG tightening in the iBoxx index already in the first week of the new quarter.

Underlying yields might have retreated but most of the big moves have come at the longer end and so total returns haven’t given much back. We’re sitting on IG returns to date this year of 3.3% (super) with spreads tighter by 38bp. The high yield market has returned 5.8% so far this year (excellent) on iBoxx index spreads 108bp tighter, and all that into broad macro weakness.

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