Category Archives for "Fixed Income Market"

27th September 2020

🗞️ Yo-yo markets here to stay

Plenty to ponder… There’s a wall of worry in front of us. The pandemic, lockdowns, the US election, social unrest across the US, uncertain macro, no visibility on the short-term economic outlook and the upcoming earnings season all represent reason for concern. Time to reduce risk, park up in cash and live to fight another […]
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24th September 2020

🗞️ Champing at the bit

Small mercies… The anticipated rout didn’t come. After the weaker close in the US the previous day, European markets opened on the back foot but really did manage to limit the downside. There was some distraction from the UK Chancellor’s statement in the Commons, while markets attempted to latch on to the better than expected […]
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23rd September 2020

🗞️ There’s life in the old dog yet

But rowing back on overly bullish expectations… Investors spent Tuesday licking their wounds and surveying the carnage of the day before – but the damage wasn’t too bad, as it turns out. That’s because on Wednesday, European markets rallied on expectations of further policy easing of some sort, as Eurozone PMIs pointed to a slowing […]
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21st September 2020

🏦 Stench of Scandal in the Air

HSBC’s bread buttered on the wrong side… We’re back in one of those periods, where market falls – sometimes as much as 3-4% leave some to ponder once again that it’s all over. Of course it’s not the case, but the headwinds are a clear and present danger. Every excuse was trotted out for the […]
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20th September 2020

🗞️ Market technicals favour corporate credit

Edgy markets… Why does it feel as if we are always on a precipice? Despite the recent pullback, the headline risks point to the tech-rally still having been overplayed and likely going to see markets correct some more/bust even, as they did during the dot.com bubble. And then there’s the pandemic, the vaccine (hopefully around […]
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16th September 2020

🗞️ Primary IG credit record beckons

ESG the way forward… A trio of IG non-financial borrowers made sure that the midweek session wasn’t going to be too distracted ahead of the Fed. The daily deal flow is chipping away at the record which is now firmly in view as the total year to date of IG non-financial issuance passed the €300bn […]
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15th September 2020

💷 HY Strategy: 17.5% Returns after 5 months

Market Overview

While the equity markets rediscover themselves following that tech-led September sell-off, the credit market hasn’t quite been affected in the same way, or in a way we might have anticipated. That is, higher volatility and a sharp drop in equities usually means wider spreads, especially in higher beta markets. We haven’t seen that.

Instead, spread markets almost across the board have been firm, resolute in the face of the pressure elsewhere (equity market valuations, corporate profitability, a constant feed of geopolitical rumblings, macro uncertainty and so on).

Flow, volumes and investor interest to transact in the secondary market is, well, secondary to the need to get some more risk on board – but through the primary market. IG has a habit of receiving all of the attention and gets all the headlines. But the HY pipeline is building and we are on course for this to be – quite amazingly – a record year for issuance in the euro denominated HY corporate bond market. Another €18bn between now and year-end will do it.

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14th September 2020

🌊 Second wave? Markets making a second push, more like

M&A frenzy boosts markets… The assault on the record for annual issuance in the IG non-financial euro-denominated corporate primary bond market is on. Heading into the second half of September after €22bn of deal volume this month, we are now less than €20bn short of the 2019 record of €318bn. The pipeline is bursting and […]
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13th September 2020

🗞️ Excess market liquidity our only friend

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 […]
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9th September 2020

🗞️ Much needed calm after the storm

Surveying the damage… Markets finally got some respite and managed to put up a decent rally. There was a tinge of disappointment coming from the news that AstraZeneca had paused phase 3 COVID-19 clinical trials following an adverse reaction in one of the study’s participants. The company’s drug development (with Oxford University) was (and still […]
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