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Spreads vs. Equities

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  • The only out-of-ordinary was underperformance across $HY buckets ($BB's +12 on spread and +17 on yield).
  • Perhaps pre-earnings jitters but we still saw ~2bps of compression within $IG.
  • $IG is heading into Q3 earnings at 2yr tights, we will head in 1-2bps shy of YTD lows and sterling is back at YTD tights.

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  • The only out-of-ordinary was underperformance across $HY buckets ($BB's +12 on spread and +17 on yield).
  • Perhaps pre-earnings jitters but we still saw ~2bps of compression within $IG.
  • $IG is heading into Q3 earnings at 2yr tights, we will head in 1-2bps shy of YTD lows and sterling is back at YTD tights.