It's all relative: CLOs march tighter as macro traders open positive CDS skews
Credit default swaps are back near where they started the year after giving up their early-February gains amid a rise in government bonds. CDS curves steepened over the past month and macro hedging has left indices trading with positive skews. But CLOs paint a calmer picture in which spreads have inched tighter  

Renewed energy boosts credit as relief rally resumes
Energy companies are performing well and credit indices have resumed their push tighter after a strong surge inwards Monday, outpacing moves in other parts of the financial market

Credit makes strong gains in relief rally
The week has opened on a stronger tone amid a calming of government bond yields, conducive manufacturing data in Europe and a new covid-19 vaccine approval in the US

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

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

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

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

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

Credit touches November levels as nerves fray on France and Fed
Fears of a third national lockdown in France and the risk of disappointment from Wednesday's US Federal Reserve meeting have pushed credit wider along with a sell off in stocks

Credit beats fast retreat as Biden boost dissolves in sea of troubles
The improvement of financial markets following the inauguration of Joe Biden as US president on Wednesday is looking short-lived as the week comes to an end, with CDS indices once again among the poorer performers

Financials lead tightening as calm markets greet Biden inauguration
If there is any volatility around the transition on Wednesday to Joe Biden's US presidency, it looks unlikely to come from financial markets, with CDS indices among the better performing assets in an unruffled day

Italian spreads signal Conte confidence ahead of Senate vote
Italian banks are among the best performers in credit on Tuesday as hopes rise for a vote of confidence in prime minister Giuseppe Conte's government and the CDS market returns to tighter spreads