Free Trial

Euro HY sentiment seems contained for now

CREDIT MACRO
  • Supply expectations (bbg) are quieter in both markets at €16b/$20b with Easter holidays/exchange closures on Friday.
  • As we flagged $IG did hold a tad firmer on Friday (+0.3bps) ending the week -1bp tighter - lower supply, some negative single name news that was skewed to €IG & local financials paring a recent strong rally are being chalked up as the reasons for €IG underperformance (+1.7).
  • That was more noticeable in HY (€ +22bps vs. $ -6bps) on news of restructuring for Altice and Ardagh. We don't see any noticeable outflows from the smaller €HY ETF's to flag as alarm ($HY did see outflows last week but that reversed on Thursday's session).
  • Supporting the €HY sentiment is contained for now was strong performance (-21bps) from BB spreads.
124 words

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.
  • Supply expectations (bbg) are quieter in both markets at €16b/$20b with Easter holidays/exchange closures on Friday.
  • As we flagged $IG did hold a tad firmer on Friday (+0.3bps) ending the week -1bp tighter - lower supply, some negative single name news that was skewed to €IG & local financials paring a recent strong rally are being chalked up as the reasons for €IG underperformance (+1.7).
  • That was more noticeable in HY (€ +22bps vs. $ -6bps) on news of restructuring for Altice and Ardagh. We don't see any noticeable outflows from the smaller €HY ETF's to flag as alarm ($HY did see outflows last week but that reversed on Thursday's session).
  • Supporting the €HY sentiment is contained for now was strong performance (-21bps) from BB spreads.