Archive

Monthly Archives: June 2020

30th June 2020

🍷 Glass is half full

Thanks to the central banks… It’s been a fine recovery-quarter overall, investors relieved that the markets managed to bounce back, taking in the best quarterly performance for several asset classes. And that, just as the coronavirus pandemic threatened financial armageddon. Concerted loosening of policy by central banks/governments did the trick, again. And so the market’s […]
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28th June 2020

🎖️ High Yield Market Fighting On

Headwinds aplenty, but liquidity supportive… Well, ams AG tripped up. Such is the edginess particularly around Germany Inc after Wirecard’s demise, investors had every right to reassess their allocations to the high yield borrowers deal last week. We move on, but it is a rollercoaster ride at the moment. That’s chiefly because Covid19 outbreaks/lockdowns are […]
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25th June 2020

☀️ Summer’s here, but no holiday just yet

Credit still dealing… A calmer session that didn’t quite follow through on the midweek wobble, but be assured that there will be a few more of them before we have a grip on this virus. That wobble was after PMIs and other data showed we were in some sort of a recovery mode, even if […]
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23rd June 2020

🗞️ A new cautious optimism is palpable

Timing. It’s all in the timing… Credit markets, focused on issuance, were excited about the inaugural 4-tranche, €4.5bn offering that came from Exxon Mobil. Not us. It is the Profine issue, which breaks new ground for the high yield market in Europe given the timing of its high coupon deal, during what is still an […]
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21st June 2020

✨ Corporate bonds: Stellar recovery, more to go…

Who would have thought it?… It’s been an excellent recovery for corporate bond investors/portfolio managers over the last 3 months. In the depths of the Covid-19 pandemic panic, the benchmark returns in IG, for example, bottomed at -8% in the period to end March. Few would have thought that getting back to flat or into […]
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17th June 2020

🎶 The music just keeps on playing

Summer of content… The early June wobble over, the markets are back in full swing with the glass being viewed as being half-full. The temptation might be to put some shorts on, but lurking is a policy response to any (impending) weakness, that the upward momentum is soon re-established. Right now, it’s about not fighting […]
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16th June 2020

🍾 Whatever it takes

And the markets like it, a lot… Was that the sound of corks popping? The Fed is going to be buying corporate bonds. US retail sales bounced 18% higher in May (core by 12.4%) and well ahead of expectations. And there is talk of Trump possibly announcing a $1trn Federal infrastructure spending programme. Like discovering […]
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14th June 2020

🗞️ Wobble Over, Higher We Go

Economy in recovery mode… Every large equity market decline and the headlines have us back in the eye of the storm. Add into it the data for the months past coming in as feared – if not worse (UK GDP, for example), and it’s all over. However, there’s resilience being displayed by investors who appreciate […]
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11th June 2020

🥊 Down, but not out

Fed will underpin asset bubbles… Concern because of the Fed’s dovish outlook will eventually be overcome, as markets will be comforted by the easier monetary policy in place for what will seem like an eternity. The Fed will be mollycoddling the economy for another 30 months, as they grapple with weaker growth and a deteriorating […]
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10th June 2020

⏸️ Fed likely on hold for 18 months!

Markets flooded with deals… The pace of the IG non-financial issuance shows absolutely no sign of letting up. The market is being flooded with paper but the demand for it is undimmed, the mop-up operation working a treat. The deluge looks like we are heading for a €40bn+ June, after successive €50bn+ record-breaking months. The […]
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