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7th March 2020

🗞️ Beyond Thunderdome

MARKET CLOSE:
iTraxx Main

73.3bp, +5.5bp

iTraxx X-Over

376.9bp, +59.6bp

🇩🇪 10 Yr Bund

-0.72%, -4bp

iBoxx Corp IG

B+138bp, +10bp

iBoxx Corp HY

B+468bp, +37bp

🇺🇸 10 Yr US T-Bond

0.77%, -16bp

🇬🇧 FTSE 100

5563.74, (-5.25%)
🇩🇪 DAX

9815.97, (+1.90%)
🇺🇸 S&P 500

2626.65, (+1.89%)

Things can only get worse…

There is no recent historical comparison. We’re in fresh territory and it’s become a struggle for markets trying to trade this particular crisis. It could be, that despite the big falls in markets, we ain’t seen nothing yet.

Impressively, markets are trying to hang on and are fighting a great rearguard action. Unfortunately, though, we are probably yet to have the big move. That’s because the global economy is heading for – or rather is in – an effective lockdown.

This isn’t about being short of liquidity and adding more of it into the financial system to alleviate a funding crisis. That will only help at the margins. We are in the throes of a synchronised pulling up of the drawbridge, Mad Max style. It’s every man for himself.

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