Daily Archives: 9th January 2020

9th January 2020

🗞️ Dropping like flies

iTraxx Main

42.9bp, -1.1bp

iTraxx X-Over

203.8bp, -6.1bp

🇩🇪 10 Yr Bund

-0.23%, +3bp

iBoxx Corp IG

B+105.7bp, -0.5bp

iBoxx Corp HY

B+346bp, -5bp

🇺🇸 10 Yr US T-Bond

1.90%, +2bp

🇬🇧 FTSE 100

5510.33, (-5.25%)
🇩🇪 DAX

9632.52, (-3.68%)
🇺🇸 S&P 500

2541.47, (-3.37%)

First North Korea, now Iran…

The scuffle between the US and Iran in the opening week of the year served to reset the date for when we kicked-off for 2020 to Jan 7th. And, as we expected, equities are on the up and credit primary has come out the blocks albeit probably anticipating another event which closes the window!

Get it done, quick. That is, the sluice gates have opened but they might shut sharpish if we’ve called the US/Iran situation wrong, for example. It was day 3 of the deluge.

All equity markets are back in the black (S&P posting fresh record highs) and the relief rally looks like it has legs in it yet. Secondary IG credit has edged wider, probably on valuation (giving back some of December’s low-flow driven tightening) – but not helped by the volatility in equities. Few are chasing it on expectations of heavy supply. Higher beta credit – CoCos and high yield corporate markets specifically, have been unmoved by it all and outperforming, relatively.

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