Index tranches and Sub Fin basket among top picks after ECB meeting, says JP Morgan

By Dan Alderson

The European Central Bank’s statement that rate cuts will likely be paired with tiered deposit rates suggests a boost for the iTraxx Sub Financials index, as well as tier two and additional tier one bank bonds, says JP Morgan in latest credit research. The bank also advocates selling iTraxx Europe 0-3% tranches delta hedged

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TAGS: CDS Europe Investment grade credit JP Morgan Research Credit derivatives