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$ Pharma Supply Deluge to Continue

CREDIT UPDATE

Bar any impact from above (emerging) US Telco outage headlines, €IG is pointing to a very strong session - curves are firmly tighter & continuing its now 2 week rally. Again no signs of weakness in $IG primary yest. (books 4.2*) and secondary (-1bp), despite Cisco (A1,AA-) bringing $13.5b & topping Bristol's (A2,A) $13b from last week. Again yesterday's $ moves were driven by fin's (-1.7) as seasonal skew to corp supply continues. M&A fuelled issuance is expected to continue today - Pharma AbbVie (A3,A-) set to bring >$13b which will bring WTD issuance ($34b) in-line with expectations ($50b). Primary is quieter locally - supply is within expectations already & no firm skew towards corp's has left spreads moving in tandem.

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