US and European gov yield rise spooks credit market
Credit markets took a decisive shift wider on Thursday, as rising US and European government bond yields rattled investors despite the European Central Bank signalling it will take a flexible approach to bonds to prevent fiscal tightening

February credit gains wiped out as inflation fears rise
A successive move wider in spreads on Tuesday is taking credit back to start of February levels, as investors try to weigh inflation concerns and a US tech stock rout against reopening economies and advancing commodity prices

Rates moves points to credit improvement, say BofA strategists
Focus on the rates market and the future direction of central banks has brought jitters back to credit in recent weeks and had a chilling affect on bond total returns. But higher government yields could end up being good for credit, say Bank of America strategists

Italian banks widen sharply as risk-on drive falters
Italian banks are among Wednesday's underperformers as single name credits play catch up with a shift wider in indices, amid signs the recent bull run is petering out

Europe resumes rally in US absence with Italian spreads hitting new records
Caution about a possible Draghi bubble looks to be a rare commodity, as Italy sovereign and bank spreads are once again among the biggest improvers in a buoyant start to the week

BlueBay adds to PM roster with promotion in London
BlueBay Asset Management has promoted a member of its investment grade credit team to portfolio manager

Draghi support keeps Italy in driving seat as markets slow
A cautious tone has re-entered the credit market ahead of the long US weekend, with spreads edging wider along with softening stocks and oil prices. But some Italian credits are bucking the trend

Compression trades grind into gear as spreads narrow
Compression between high yield and investment grade credit looks to be finally gaining traction in February, having been identified by some strategists at the start of the year as a key 2021 theme

Redhedge launches European relative value fund with an eye on pair trades
Redhedge Asset Management has launched a Ucits version of its relative value credit strategy

Curve steepeners gain ground with inflation in focus
Credit performance this week has done little for market-directional trading strategies, but one area gaining traction beneath headline numbers is the steepening of curves

Credit returns to year-opening levels as bulls score five out five
Credit markets are on course for their fifth straight day of improvement, with CDS index spreads not only undoing last week's volatile move wider but regaining the tight levels at which they began the year

It's all relative: CLOs are lagging no more, as Carlyle deal drags market tighter
“CLOs are lagging” has been a much repeated refrain over the last nine months. But Carlyle Group has this week produced a US CLO that has dragged spreads to their tightest point in three years so that, rather than comparing CLOs to pre-covid levels, they should be assessed against early 2018

Credit trends wider as it makes bad first compression in 2021
With credit spreads starting the year close to the absolute tights they reached in early 2020, investor emphasis is heavily on relative value. But so far the most signposted of these trading strategies are failing to perform, while market-neutral opportunities have greatly diminished

High yield credits play catch up as central banks put brakes on bull run
High yield single names gained attention on Thursday, as financial markets took a breather after three days of improvement to digest UK and China central bank policy signals

Biden buzz highlight's credit's growing pains
Stimulus and a “reflationary window” are the dominant themes of early 2021, particularly in the US, and they will favour growth assets over credit in the near term, say investors.

Italy gives short-lived succour to credit short strategies
Events in Italy last month showed there is still opportunity for nimble short strategies in credit despite the weight of technical factors pushing down spreads

Credit funds at a glance (February 2021)
A round-up of fundraising and people moves

Fund performance: CLO funds keep up momentum as Napier Park finishes top
2020 ended with funds in our CLOs category taking the top few spots

Ucits at a glance: Advent ends calendar year on top
Ucits ended 2020 on the rise as 89% of funds achieved positive returns in December

Credit hedge funds (February 2021)
Monthly credit hedge fund tables

Italian credits lead race tighter as Super Mario eyes new mission
Italian sovereign, bank and corporate spreads are in the spotlight today, after the country's president Sergio Mattarella asked former European Central Bank president Mario Draghi to lead a government in the wake of Giuseppe Conte's coalition collapse

It's all relative: senior CLO tranches tighten 18% in Europe as CDS indices sit out rally

Silver squeeze reaches credit in brighter trading mood
Financial markets are beginning the week and the month in a more positive mood after a volatile end to January. But retail investor power - the bane of hedge funds last week - is again exerting an influence that permeates through to credit

Credit grasps for stability after midweek swoon
Credit markets look to have regained some composure at the end of a rocky week, with indices flattening out despite a continuing decline in stocks

US looks for stronger open after sell off
US credit is opening slightly stronger on Thursday, after its sharp Wednesday rout, prompted by Federal Reserve messaging, carried over forcefully into Asian and European markets