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8th January 2020

🗞️ The show must go on

MARKET CLOSE:
iTraxx Main

44bp, -0.3bp

iTraxx X-Over

212.2bp, -2.3bp

🇩🇪 10 Yr Bund

-0.26%, +2bp

iBoxx Corp IG

B+106.3bp, +0.7bp

iBoxx Corp HY

B+352.5bp, +1.5bp

🇺🇸 10 Yr US T-Bond

1.83%, +1bp

🇬🇧 FTSE 100

5510.33, (-5.25%)
🇩🇪 DAX

9632.52, (-3.68%)
🇺🇸 S&P 500

2541.47, (-3.37%)

Drawing a line in the sand…

At this rate, we’re going to be in need for some window locks – Just to keep borrowers out! Wednesday was another session flush with corporate bond deals keeping credit markets extremely busy. And that, after what seems like a ‘face-saving’ limited response by the Iranian regime against the US. If that’s where we can draw a line, then it will be back to an extended period of sabre-rattling between the two protagonists.

But there is no stopping primary in what seems to be the busiest start to a year for an age. We had deals right across the board, and that meant the euro high yield issuance opened its account for 2020. Equities took only a modest hit at the open, rates were slightly better bid, Bitcoin was finding some support and oil’s rise was measured (just +0.5%). Secondary credit took a back seat and was probably better offered for choice amid little trading flows, with the focus of investors squarely on primary.

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