Daily Archives: 13th May 2020

13th May 2020

🇩🇪 Germany Inc. steps up the pace

iTraxx Main

87.7bp, +3.8bp

iTraxx X-Over

518.9bp, +16.1bp

🇩🇪 10 Yr Bund

-0.53%, unchanged

iBoxx Corp IG

B+201.3bp, +2.5bp

iBoxx Corp HY

B+xxxbp, -+xbp

🇺🇸 10 Yr US T-Bond

0.64%, -5bp

🇬🇧 FTSE 100

6104.73, (+1.71%)
🇩🇪 DAX

13066.54, (+2.36%)
🇺🇸 S&P 500

3431.28, (+0.67%)

Indigestion and too rich, but still gluttonous…

Primary credit markets continue to burst at the seams. It’s not often, in crisis conditions, that we get a HY borrower rated in the mid-single-B area manage to print an upsized deal (from €400m) of €850m! In the IG non-financial market, corporate treasury department suspicions lurk as to the macro outlook, because the deal flow continues at a record run rate.

The IG non-financial market has already seen €190bn issued this year, €37bn of it this month so far. The record month was April, when €57bn got away. The record year was 2019, with €318bn printed. It has to be fear of the post-June/maybe post-summer period. Get the cash on board, worry about holding it at negative rates another time. There’s nothing particularly smart in the process; It’s just fear and following of the herd.

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