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Daily Archives: 19th November 2019

19th November 2019

One last push

MARKET CLOSE:
iTraxx Main

49.4bp, +0.6bp

iTraxx X-Over

233.1bp, +0.8bp

🇩🇪 10 Yr Bund

-0.34%, unchanged

iBoxx Corp IG

B+115bp, +0.8bp

iBoxx Corp HY

B+400bp, unchanged

🇺🇸 10 Yr US T-Bond

1.79%, -2bp

🇬🇧 FTSE 100

5415.50, (-1.18%)
🇩🇪 DAX

9525.77, (-0.47%)
🇺🇸 S&P 500

2488.65, (-1.51%)

No let up in primary markets…

It’s beginning to look like we are having one last major push to get business done before we close out for the year. The push can go on for a few weeks! Equities started on a high, but for no obvious reason – and faded the gains, rates didn’t too much though (perhaps better bid) while credit investors were faced with a mass of deals in a very busy session.

Never mind that annual records have already been broken (IG non-financials) even as secondary is just beginning to leak wider and as the ECB is busy lifting the market. This is about getting risk on board.

Borrowers (for one) are not holding back. Just three weeks ago we were far away enough from the record for HY issuance (needing some €15bn to get done) that any notion we might get there was for the fairies. We are now less than €5bn of deals away. It has been an extraordinary month in credit primary.

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