Archive
Daily Archives: 20th September 2018
20th September 2018
- by Suki Mann
The future is bright for credit
| MARKET CLOSE: | ||
| iTraxx Main
67.9bp |
iTraxx X-Over
266bp |
🇩🇪 10 Yr Bund
0.48%, -1bp |
| iBoxx Corp IG
B+129.8bp, -0.5bp |
iBoxx Corp HY
B+379.2bp, -0.8bp |
🇺🇸 10 Yr US T-Bond
3.07%, -1bp |
| 🇬🇧 FTSE 100 [wp_live_scraper id=”17″], [wp_live_scraper id=”18″] | 🇩🇪 DAX [wp_live_scraper id=”19″], [wp_live_scraper id=”20″] | 🇺🇸 S&P 500 [wp_live_scraper id=”21″], [wp_live_scraper id=”22″] |
Scene set for a squeeze in spreads…
Could it be that credit spreads are set for a squeeze tighter through the remaining months of this year? One of the features of the supply seen this month is that books have been oversubscribed by a considerable margin, and deals have been able to be priced tighter by more than the average seen previously this year. The clamour for non-financial IG corporate risk from investors has come about because there hasn’t been the usual level of issuance – we’re well below the average levels seen in the past five years. But also, investor cash balances are at extremely high levels and need a home – quickly.
