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Daily Archives: 9th February 2020

9th February 2020

♠️ Calling a spade a spade

iTraxx Main

43.4bp, +0.7bp

iTraxx X-Over

215.5bp, +4bp

🇩🇪 10 Yr Bund

-0.39%, -2bp

iBoxx Corp IG

B+102bp, unchanged

iBoxx Corp HY

B+339.5bp, +2bp

🇺🇸 10 Yr US T-Bond

1.58%, -6bp

🇬🇧 FTSE 100

6104.72, (+1.14%)
🇩🇪 DAX

12660.25, (+0.47%)
🇺🇸 S&P 500

3327.77, (+0.62%)

Cavalier rally…

Much low(er) growth for longer, low(er) rates for longer. Add into the pot reduced consumption levels, declining investment, activity on the wane as the closure of China Inc spreads to other countries then we have the ingredients in place for a synchronised global recession.

Surely those equity market record highs are set for a reverse? Markets are currently trading on expectations that the central banks will come to the rescue and limit the potential for an economic and financial market meltdown.

Increasingly, the coronavirus spread is being talked about as being the market’s Black Swan event, but investors are choosing – or being forced, to ignore it. That’s largely a result of the copious levels of liquidity in their hands needs investing but also because if it materialises that it isn’t such an event, the catch-up trade would be painful.

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