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Rough Open

CREDIT UPDATE
Credit BulletsBulletHomepagemarkets-real-timeCredit
It's a rough open for us with +2-4bp broad based widening

  • It follows $IG/HY closing at +4.4/+11.2bps - that is the worst close for IG in over a year.
  • It's adding to an already rough week; $IG spreads are widest since March while €IG is still 10bps shy of French election triggered wides in June.
  • Looks to be driven by rates rally that has dragged index yields for both €IG and $IG down circa 25bps - €IG yield at 3.4% is the lowest in 2years.
  • We haven't seen the same extent of weakness in our equity baskets, CDS indices have followed cash out this week though.
  • Adding to above, fund flows locally remained firm in €IG/HY and £HY. Only weakness was the flat flows for £IG. ETF Flows in $ space look firm as well, though yesterday's session flows will only flow in later today.
  • In HY, spread pressure locally seems to be in BB's and for $ in single and double Bs. Yields have held up better (over the week) across both regions.
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It's a rough open for us with +2-4bp broad based widening

  • It follows $IG/HY closing at +4.4/+11.2bps - that is the worst close for IG in over a year.
  • It's adding to an already rough week; $IG spreads are widest since March while €IG is still 10bps shy of French election triggered wides in June.
  • Looks to be driven by rates rally that has dragged index yields for both €IG and $IG down circa 25bps - €IG yield at 3.4% is the lowest in 2years.
  • We haven't seen the same extent of weakness in our equity baskets, CDS indices have followed cash out this week though.
  • Adding to above, fund flows locally remained firm in €IG/HY and £HY. Only weakness was the flat flows for £IG. ETF Flows in $ space look firm as well, though yesterday's session flows will only flow in later today.
  • In HY, spread pressure locally seems to be in BB's and for $ in single and double Bs. Yields have held up better (over the week) across both regions.