October 18, 2024 15:24 GMT
MNI Credit Weekly: Another Brick in the Wall of Cash
Executive Summary: Another Brick in the Wall of Cash
- Another slightly bullish week for Euro credit with spreads 2.5bp tighter on the week. It was the Dollar market that grabbed most of the headlines, with spreads there hitting the tightest levels since 2005. Financials and Real Estate were strongest, reflecting beta compression and rates dynamics.
- Meanwhile, the list of fallen angel candidates is growing and autos continue to feature in the ratings action list. Spreads were relatively unscathed, nonetheless.
- Rates markets diverged with dovish pricing in Europe post-ECB and the reverse action in the US where retail sales and Trump victory odds were in focus. Peripheral spreads had a firm week.
- Institutional Fund Flows saw a reacceleration, with excess demand still an important spread driver.
- A slow week for Primary helped pricing stay at aggressive levels; although 3 Friday deals could point to ongoing supply next week into peak earnings season.
Full piece here: 24.10.18 MNI Credit Weekly.pdf
Keep reading...Show less
153 words