Category Archives for "Fixed Income Market"
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.