Archive

Daily Archives: 3rd May 2020

3rd May 2020

🗞️ Looking Beyond the Sombrero

MARKET CLOSE:
iTraxx Main

80.7bp

iTraxx X-Over

491.4bp

🇩🇪 10 Yr Bund

-0.59%

iBoxx Corp IG

B+193bp

iBoxx Corp HY

B+646bp

🇺🇸 10 Yr US T-Bond

0.62%

🇬🇧 FTSE 100

5897.76, (-1.54%)
🇩🇪 DAX

12313.36, (-0.54%)
🇺🇸 S&P 500

3271.12, (+0.77%)

Glass half full…

March especially – and Q1 as a result, was awful. April’s final trading session ended on a sour note, leaving the month witnessing only a decent recovery for risk markets with the FTSE adding 4.1%, the Dax 9.3% but the S&P a not too shabby 12.7%. Concerted, aggressive and unprecedented stimulus packages did the trick. Investors were also mostly looking beyond the Q1/Q2 slump in macro – and trying to bag a bargain.

It might not be a V-shaped recovery, but we’re going to get some kind of a return to growth. The odds probably favour a ‘jagged swoosh’. Credit plays into it as well in primary, where demand for deals has been nothing short of insatiable. Unfortunately, the recovery in spread markets after the initial snap back – which was significant – is now becoming more laboured across the board.

Continue reading