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Daily Archives: 24th September 2019

24th September 2019

Lies, lies and more lies

MARKET CLOSE:
iTraxx Main

55.0bp, unchanged

iTraxx X-Over

223.3bp, -0.7bp

🇩🇪 10 Yr Bund

-0.60%, -2bp

iBoxx Corp IG

B+124bp, unchanged

iBoxx Corp HY

B+405bp, +4bp

🇺🇸 10 Yr US T-Bond

1.66%, -5bp

🇬🇧 FTSE 100

6026.94, (-1.27%)
🇩🇪 DAX

12591.68, (-0.54%)
🇺🇸 S&P 500

3349.16, (+0.22%)

Primary keeping credit markets occupied…

Thermo Fisher, what else? The US borrower finally hit the screens and added €4.4bn to the IG non-financial corporate bond issuance tally, leaving September (with four sessions still to go) as the best month for deals in years. For the full-year, we’re up at €250bn and, unless the market completely falls out of bed (unlikely), just another €35bn is needed between now and year-end for a record annual total. We’re calling it, with €300bn very much in view.

There’s clearly still decent enough demand for corporate bond risk. Corporate treasury desks, never ones to miss an opportunity to get cheap funding on balance sheet, have been falling over themselves to do just that. Investors, on the other hand, are also front-running the ECB and trying to get their hands on paper before the manipulative hand of the central bank makes its presence felt.

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