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Daily Archives: 24th October 2019

24th October 2019

November Promises Much

MARKET CLOSE:
iTraxx Main

51bp, +0.4bp

iTraxx X-Over

229.3bp, +2.1bp

🇩🇪 10 Yr Bund

-0.38%, +2bp

iBoxx Corp IG

B+115.7bp, -1bp

iBoxx Corp HY

B+404bp, +5bp

🇺🇸 10 Yr US T-Bond

1.75%, unchanged

🇬🇧 FTSE 100

6032.18, (+0.09%)
🇩🇪 DAX

12674.88, (+0.66%)
🇺🇸 S&P 500

3351.28, (-0.09%)

Not bad. Not bad at all…

There are still five session left in which to get business done before we close out a decent month for credit markets. Total returns in IG are very slightly negative, affected by the sell-off in the underlying this month, but spreads (iBoxx) are 10bp tighter so far. As if anyone needs a reminder, high beta credit has performed much, much better. The AT1 market is up by 1.3% in the month so far (+13.8% YTD on AT1 index spreads 265bp tighter) with the high yield market flat for the month in total return terms.

HY spreads are just 15bp tighter in October. Generally, we have continued to preserve performance in both absolute and spread terms. In addition, the clock ticks for the ECB’s intervention (Friday onwards) and we look for performance to improve on the back of it through to year-end, seeing out a fine 2019 for credit investors.

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