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ETF Flows

CREDIT UPDATE

$ETF flows showing clear divergence between IG (inflows) and HY (outflows) this week. Not much evidence of that in $HY secondary that continued moving low single digit tighter yesterday - but rates did come out helping yields up and may be masking weakness. €IG's IEAC flows look flat on flows as usual and our supply remains muted. We've seen weakness in some €HY deals of recent (some on the down vs. ratings and 2 French). In-line with that no signs of secondary spreads repricing wider (WTD: €BB's -3, €Bs -4).

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