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Cash sells-off aggressively

CREDIT UPDATE
  • €IG cash has moved to a firm skew wider that looks worse than Friday's +3bp close.
  • Unlike Friday we are seeing pressure in €HY cash lines; Altice, Ardagh & Atos all moving more than a pt cheaper. Airlines are also looking at a rough session; Air-France up to half a point cheaper on 28's. Relative to cash Main/Xover is a more tame +1.6/+7 wider.
  • Again hard to point to Geopol risks; S&P futures are flat from close levels ($IG closed +1.5 wider yesterday) & €IG equities are -1.2% - moves we have traded through in the past.
  • €IG did underperform on Friday's risk-off and looks like we might see that again today.

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