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CREDIT UPDATE
  • $ETF flows were weaker on Friday including $630m pulled from HYG. Still, it's not broad based or showing any strong trends to be of concern. No weakness in IEAC on Friday.
  • $IG was firmer than us to end the week (+1.9 vs. +9.1) and that sentiment seems to be continuing today in primary and potentially secondary.
  • €IG is skewed wider led by another poor session for financials (broad based). OAT (-5) and BTP (-6) spreads are tighter leaving today's weakness isolated to corps. Will be a weaker session for those hedging in swaps (for a change); 5yr swap spreads -1.5 in.

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