Free Trial

EU Close

CREDIT UPDATE

€IG was skewed tighter pointing to its 10th straight session tighter, now totalling ~8bps. Rates are keeping this years total IG returns depressed at -0.6% but excess returns have had one of its best starts at +0.8%. Main drags in cash today were PBB & Edenred {EDEN FP Equity -12%} (NR, A-) - latter on Rome prosecutors office seizing €20m on accusations of aggravated fraud & bid rigging - statement from company gave little info, cash lines are 8-15bps wider. It will report FY23 results on Tuesday morning.

Outside Edenred, IFF, HSCB & Woolworths - all post-earnings- were largest falls in €IG equities today with little flow through to credit. The equity basket ended +0.2%, only >1% mover was consumer discretionary (+1.1%) driven by Auto's reversing some of yesterday's sell-off on weak Jan ACEA data. Nvidia (A1,A+) earnings after US Close likely to be a driver for S&P on the open tomorrow - stock down -8% this week in anticipation.

iTraxx closed -0.7/-3.2 tighter, US/Euro rates selling off ahead of minutes (+7) - our DM team saw no clear driver outside of levels/positioning.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.