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Daily Archives: 27th June 2018

27th June 2018

Policy on the hoof riles markets

MARKET CLOSE:
iTraxx Main

73.8bp, -0.5bp

iTraxx X-Over

320.8bp, +3.3bp

🇩🇪 10 Yr Bund

0.32%, -1bp

iBoxx Corp IG

B+134.5bp, +2.4bp

iBoxx Corp HY

B+410.4bp, +7bp

🇺🇸 10 Yr US T-Bond

2.85%, -3bp

🇬🇧 FTSE 100

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🇩🇪 DAX

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🇺🇸 S&P 500

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That’s about it until September…

The markets are not being kind to primary credit at the moment, leaving a whole host of potential corporate borrowers possibly flustered. We think that the window to get deals away is open, but few dare pull the trigger while equities are falling so consistently and there is a clear bid for safe havens, just as there was once again in Wednesday’s session.

The persistent air of crisis doesn’t exactly breathe confidence into the corporate bond investment process. The runway is backed-up and we’re going to be well into July before this backlog has cleared – if it needs to be shifted before the summer break. That’s because there’s a lot in the pipeline which can wait until the September reopening. Some will choose to wait so as to not pay up.

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