Daily Archives: 7th January 2020

7th January 2020

Dusted Down and Deals Flowing

iTraxx Main

44.3bp, -0.8bp

iTraxx X-Over

212.2bp, -0.7bp

🇩🇪 10 Yr Bund

-0.28%, unchanged

iBoxx Corp IG

B+105.6bp, +0.5bp

iBoxx Corp HY

B+351bp, unchanged

🇺🇸 10 Yr US T-Bond

1.81%, unchanged

🇬🇧 FTSE 100

5510.33, (-5.25%)
🇩🇪 DAX

9632.52, (-3.68%)
🇺🇸 S&P 500

2541.47, (-3.37%)

Champing at the bit…

We’re up and running. But not before markets had been rattled by the killing of senior Iranian commander Qasem Soleimani. While tensions will remain elevated amid fears of any retaliation which might emerge against US interests, it seems to have had a short-lived impact on markets.

We would think that the market is taking the view that the reprisals will be more limited than might initially have been anticipated, albeit with much sabre-rattling likely for the foreseeable future.

Anyway, the markets have settled and we start again. That is, equities are looking to go higher, safe-haven rates are not so well-bid, oil has dropped off the spiked highs seen on Friday/Monday and corporate credit primary has re-opened. So, not a disaster. Of course, we can expect another bout of volatility as surely a response will eventually come from the Iranian regime. Until then, it’s going to feel like we are possibly past the worst of it as investors trade the early part of the new year with a positive bias.

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