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Daily Archives: 22nd May 2019

22nd May 2019

Time to say Goodbye

MARKET CLOSE:
iTraxx Main

66.3bp, +1.3bp

iTraxx X-Over

282.8bp, +4.7bp

🇩🇪 10 Yr Bund

-0.09%, -3bp

iBoxx Corp IG

B+136.9bp, +1.7bp

iBoxx Corp HY

B+436bp, +1.75bp

🇺🇸 10 Yr US T-Bond

2.39%, -3bp

🇬🇧 FTSE 100

6144.25, (+1.26%)
🇩🇪 DAX

11657.69, (+1.33%)
🇺🇸 S&P 500

3036.13, (+0.74%)

Election fever rises…

We may have gushed deals on Tuesday but we had the necessary slowdown in the flow on Wednesday, which will have served the corporate bond market very well – Because it will keep investor indigestion at bay, allowing us to absorb that slew of issuance. There is always a temptation from borrowers to flood the market when they know the going is good (as it is now), but during the session we had just Total SA and Schneider Electric (tap) print in IG non-financials – after €5bn of issuance in the previous session, with just the odd borrower in senior financials.

As it has done for much of this year, the credit market appears to be behaving in a measured way, leaving us in decent shape as we close in on the end of the month. We have lost just 0.2% – 1% in performance across the various high/low credit sectors. We can take that, because IG is still up around 4% this year at the moment and high yield returns are approaching 6%.

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