MNI Credit Weekly: Four Goes Into Five (Reblast From Friday)

https://roar-assets-auto.rbl.ms/files/67070/24.08....

• Spreads were very slightly tighter this week, with a heavy week of primary likely capping positive moves. Much of Europe enjoyed a shorter week but the slew of primary made it feel like syndicates were trying force a full week of activity into the curtailed timeframe. Sectoral moves were all tightly clustered, except for the positive move in Real Estate (with strong moves from Castellum, Aroundtown and Fastighets AB Balder). Healthcare was a marginal underperformer. Lufthansa and Leonardo were two of the weakest single names.
• Jackson Hole last week has indicated that the Fed is increasingly worried about the labour side of its mandate, and now feels inflation could well be defeated. In Europe, data was broadly supportive of the consensus narrative around upcoming cuts, with the exception of the Services CPI print which continues to worry some ECB hawks. Fiscal debates are now starting to heat up across Europe as politicians return from Summer breaks.
• Primary saw the third busiest week of the year in terms of volume though the supply was well-absorbed with cover ratios and NICs only negligibly weaker than last week.Fund flows remain firm continuing to point to a positive setup ahead of another pickup in the pace of supply (based on surveyed expectations).