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CREDIT UPDATE
  • €IG has reversed this afternoon to be skewed slightly wider - if so it'll break a 6-session/10.5bp rally - it still will end firmly tighter on the week.
  • Its hard to blame Reckitt's news/sell-off (its not a credit heavyweight & news is contained to it), broader equities (€IG basket is +0.2%), rates (belly is little changed, +1.5 on the day) or $IG which is still printing tighter for today's weakness.
  • Move wider seems to be led by financials so looks to be a paring of a fraction of this weeks gains (financial equities are +0.9%). Primary stayed open with €1.5b pricing, all in financials.
  • Reckitt (A3, A-) € lines are heading for a +15-20bp close while sterling 32/38's are +13/15 - its hard to take a view its cheap here given how early we are in the developing situation and little clarity on the number of cases and/or approach it'll take.
  • Supply this week was above €30b (expectations ~€21b). Next week's expectations remain muted at ~€20b locally and are for a slowdown to $30b in $IG.
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  • €IG has reversed this afternoon to be skewed slightly wider - if so it'll break a 6-session/10.5bp rally - it still will end firmly tighter on the week.
  • Its hard to blame Reckitt's news/sell-off (its not a credit heavyweight & news is contained to it), broader equities (€IG basket is +0.2%), rates (belly is little changed, +1.5 on the day) or $IG which is still printing tighter for today's weakness.
  • Move wider seems to be led by financials so looks to be a paring of a fraction of this weeks gains (financial equities are +0.9%). Primary stayed open with €1.5b pricing, all in financials.
  • Reckitt (A3, A-) € lines are heading for a +15-20bp close while sterling 32/38's are +13/15 - its hard to take a view its cheap here given how early we are in the developing situation and little clarity on the number of cases and/or approach it'll take.
  • Supply this week was above €30b (expectations ~€21b). Next week's expectations remain muted at ~€20b locally and are for a slowdown to $30b in $IG.