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CREDIT UPDATE

• Global rates were little changed to start the week with no major economic data releases. Bunds and treasury yields close 1bp lower.

• Stocks were also very flat with SXXP and SPX both unchanged. Consumer discretionary is the only sector in the €IG issuer basket up more than 1%. Maersk (+8%) and VF Corp (+5%) were the main single name stock movers.

• €IG cash closes flat overall despite heavy primary; issuing credits saw their curves just 2-5 wider. We had €11bn in primary price today (BMW, Amprion, Ford, Lufthansa, AIB T2, Intesa Sanpaolo AT1, HSBC, MunRe T2) generally well received. Not much movement in $IG cash either.

• CDS indices close marginally better with Main / XO -0.3 / -2.

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