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Daily Archives: 13th September 2020

13th September 2020

🗞️ Excess market liquidity our only friend

MARKET CLOSE:
iTraxx Main

55.6bp, +1.6bp

iTraxx X-Over

325.6bp, +12bp

🇩🇪 10 Yr Bund

-0.48%, -3bp

iBoxx Corp IG

B+125bp, unchanged

iBoxx Corp HY

B+450bp, +5bp

🇺🇸 10 Yr US T-Bond

0.67%, +1bp

🇬🇧 FTSE 100

5860.28, (+1.29%)
🇩🇪 DAX

12645.75, (+0.82%)
🇺🇸 S&P 500

3465.39, (+0.34%)

And it’s Japanification across the Eurozone…

The equity market wobble – largely tech related – which brought many other markets back down to earth has hopefully played out. The markets do look tired, though. Any rise from here ought to be more measured as a result, circumspect even, when put against than that ‘whale-trade’ driven lurch higher previously.

We’re likely in for a heavy week in primary but credit spreads look set to continue to tighten anyway, the link between supply and secondary spread direction long broken. And with rates anchored, total returns in credit (including HY possibly) are on track to deliver a positive result for 2020.

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