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CREDIT UPDATE
  • Low vol session to start the week with €IG relatively flat. RE name Heimstaden (BBB-, BBB-; Neg) is continuing to lead widening in the index (+27-42bps) but still well tight from levels earlier this year. Strongest performer was Prosus (Baa3 Pos, BBB S) (-6-13 tighter) - seems news agnostic to us noting it is coming in from wide levels.
  • £IG is pointing to a skew wider, led by Gatwick (+5-7) on 16y mandate. Broad based +1-2bp widening outside it.* Belly bunds end +5.5bps higher, no local data to drive the move and only marks a reversal of Friday's rally.
  • Low vol in €IG equities ending +0.1% (SXXP unch) only sector on move was energy (+1%) helped up by a +4% gain in Neste. iTraxx pointing to a -0.5/-5bp close tighter.
  • S&P is trading sideways (-0.2%) & similar story in $IG that's struggling to give direction.

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