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Daily Archives: 19th May 2020

19th May 2020

📊 Landmark: IG Issuance at €200bn

MARKET CLOSE:
iTraxx Main

81.7bp, -2bp

iTraxx X-Over

489.2bp, -10bp

🇩🇪 10 Yr Bund

-0.46%, +2bp

iBoxx Corp IG

B+202bp, -4bp

iBoxx Corp HY

B+652bp, -15bp

🇺🇸 10 Yr US T-Bond

0.72%, -2bp

🇬🇧 FTSE 100

6001.89, (-0.19%)
🇩🇪 DAX

12764.80, (-0.51%)
🇺🇸 S&P 500

3397.16, (+0.34%)

And still lots to play for…

Equities’ performance for May to date is about flat. In credit, IG total returns (iBoxx) are at -1%, and the same in HY while the AT1 market is showing -2.2%. iBoxx index spreads are +10bp, -3bp and +40bp, respectively, in May so far.

Yet the corporate bond market is still being seen as the ‘go-to’ market – or, certainly, that’s what primary is telling us.

There is cash to invest, and investors need to get it to work. We still have 7 months to go in which to worry about performance for 2020. As long as the inflows are incoming, that’s good enough for now. And if we are looking at a recovery in macro sometime beginning in the second half of the year, credit spreads will be dragged tighter along with any rise in risk asset valuations.

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