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MNI Credit Weekly: Steady On The Surface

MNI Credit Weekly: Steady On The Surface

MNI Credit Weekly: Steady On The Surface

A low volatility week, with spreads little changed through two major central bank meetings.

  • IG cash spreads less than 1bp tighter with credit pricing in an ongoing goldilocks environment.
  • The demand narrative remains but we are watching fund flows closely with $IG seeing mild outflows.
  • Supply was notionally near median at just over EUR 16bn (ranked 7/15 YTD) across 15 issuers though this is significant for a three-day supply window. It was the shortest WAM of the year with just a single 10yr senior deal. Books showed the lowest cover aside from first week of the year. Average BBG NICs were wider than past two weeks at ~14bp.
  • Earnings season is underway with US banks kicking things off today.

Full piece here:

24.12.04 MNI Credit Weekly.pdf

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