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Daily Archives: 31st March 2020

31st March 2020

🗞️ Corporate bonds: Pile ’em high, sell ’em cheap

MARKET CLOSE:
iTraxx Main

98.1bp, -1bp

iTraxx X-Over

572.1bp, -8.4bp

🇩🇪 10 Yr Bund

-0.48%, +5bp

iBoxx Corp IG

B+252bp, -3bp

iBoxx Corp HY

B+782bp, -24bp

🇺🇸 10 Yr US T-Bond

0.68%, +1bp

🇬🇧 FTSE 100

6032.18, (+0.09%)
🇩🇪 DAX

12674.88, (+0.66%)
🇺🇸 S&P 500

3351.28, (+0.06%)

But it is a quarter to forget…

In the end we managed to finish in the black but there’s a feeling that we might be running out of steam. Having said that, it has been a super recovery-like period for the markets. It’s a case of too little, too late because it has been a devastating quarter for investors. We suspect that the turnaround is going to be immense, though, given the number of players looking for the ideal/opportune time to pile back in.

The rocket fuel is in place and being deployed (from the various stimulus packages) and will ultimately go a long way in assisting the recovery. Get the virus’ peak right (in the US), and one might just pick the bottom.

In the corporate bond market, the final session had us take down another flurry of deals, this time with 8-tranches from five IG non-financial borrowers. Equities added a percentage point or so. Oil edged off its recent lows. Credit spreads were stable. Q2? More of the same to start would be welcome.

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