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Daily Archives: 5th June 2018

5th June 2018

Italy makes or breaks June

MARKET CLOSE:
iTraxx Main

67.1bp, +2.1bp

iTraxx X-Over

293.4bp, +5.6bp

🇩🇪 10 Yr Bund

0.37%, -5bp

iBoxx Corp IG

B+127bp, +0.6bp

iBoxx Corp HY

B+376.8bp, +1.4bp

🇺🇸 10 Yr US T-Bond

2.91%, -2bp

🇬🇧 FTSE 100

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🇩🇪 DAX

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🇺🇸 S&P 500

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And sunnier climes are not impossible…

If the markets don’t fall out of bed this month, then it promises to be a busy period for credit. New issue mandates are being dished out aplenty, we have a good pipeline of borrowers looking to get some pre-summer funding in, and a good month in primary which doesn’t overheat will beget a sustained tightening in spreads.

New deals will likely perform given that they are coming cheaper than they otherwise might following the recent market pullback. Confidence will come off a decent stream of deals in primary as those deals perform on the break (at one stage in May, over 70% of new deals were wider than reoffer). That, more often than not, feeds into a more constructive tone in secondary. June could be good.

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