M&A drives movers in high yield and investment grade
Acquisition talks are having the biggest impact on European credit spreads on Tuesday following the UK bank holiday, with several names moving against an otherwise flat market

Banks set to offer client clearing of credit index options
Bank members of LCH, the London Stock Exchange's clearing arm, will soon start offering client clearing of CDS index options, as the industry prepares for its next ramp up of margining requirements

Picard and Cleveland-Cliffs underscore high yield single name sensitivity
Picard entered a relief rally on Friday after postponing a triple-tranche bond deal backing a refinancing and shareholder dividend

Tobacco splutters in broad market sell off
Credit and equity are under pressure on Tuesday as markets pull back from their improved levels amid concerns about the worsening global covid-19 picture. But tobacco companies have their own problems to contend with, with the US considering a proposal to require lower nicotine levels in cigarettes and other countries also looking to curb sales

Hermes seeks ESG alpha in companies making changes
Buy-side demand to tick boxes for ESG standards has fuelled a boom in green and social impact bonds that is extending into high yield issuance. But as investment opportunities mount, so does soul-searching about the next phase

Dutch telco CDS leaps on private equity rumours
An iTraxx Europe constituent has surged wider in five-year CDS amid reports of a buy-out approach

Options investors look to medium-term market normalisation
Credit index options trading has been heating up, with investors looking to take views on future market volatility well beyond the customary three-month horizon as Europe and the US grapple to keep a lid on rates.

Single names make big gains as indices dither
Single name CDS in the US and Europe have strongly outperformed from the start of the week, rallying sharply and across most of the credit universe despite direcctionless trading for indices

No sign of caution as single names pick up rally into long weekend
Credit has extended its impressive rally into the long weekend, with single names playing catch up with indices amid economic recovery signals and on the back of US president Joe Biden unveiling a $2 trillion infrastructure plan

High yield leads way as credit steals march on Biden boost
Credit indices have taken another turn for the tighter, even as stocks stay flat ahead of US president Joe Biden unveiling his infrastructure and economic recovery package

Corp hybrid popularity mounts, but strategist outlooks diverge
Corporate hybrid bonds are becoming a focal point for investors in the second quarter, with one bank's credit strategy team making them a top pick to trade spread compression while another's has expressed caution on their likely performance

CDX HY index adds 21bp in roll to series 36
US high yield index CDX HY rolled into series 36 on Monday, starting life 21bp wider than outgoing series 35

Banks take big hit as investment firm's fire sale rages
Banks exposed to embattled investment firm Archegos Capital are blowing out wider in credit markets today as their stock prices slump

Spreads rally sharply ahead of US high yield index roll
Credit markets are rallying into the weekend, pushing US high yield index CDX HY inside a key trading level ahead of its roll to a new series on Monday

TRS goes electronic on Tradeweb with iBoxx trade
Tradeweb Markets has completed what it says is the first ever fully standardised total return swap trade based on IHS Markit’s iBoxx US Dollar Liquid High Grade index

Tikehau places €500 million sustainable bond as it plans high yield impact fund
Tikehau Capital has placed an inaugural sustainable bond that it says is the first of its kind for an asset manager

CDX HY roll calculations shift as new name change added
A sixth CDX HY constituent change has been added to the provisional list for the index's roll on Monday from series 35 to 36

Roll pushes indices wider but fair value trumps technical positioning
Several CDS indices rolled into new series on Monday, with all of them adding spread over the outgoing versions due to added duration as well as composition changes

CDX HY to include name with no CDS as new liquidity rules shape portfolio
Changing name selection criteria for the CDX HY is set to produce an unusual result at the forthcoming roll into series 36, with one borrower constituent entering the index that as yet has no CDS attached

Yield rise is buying signal for bonds, says BNP Paribas
Credit spreads are set to hit new cyclical tights in the coming months, with the recent rise in yields having offered an attractive entry point especially for high-rated bonds, say BNP Paribas credit strategists

ESG basket grows and rising stars take focus in CDS index roll changes
Expansion of the ESG investing universe is a prominent feature of this month's roll of iTraxx and CDX indices into new series. Improved credit performance of high yield companies is also a focus, with several moving up into investment grade portfolios

Brazil upheaval sends EM spreads to new wides
Emerging market credit spreads are reaching new wides, with Brazil holding focus in the sell off amid a spike of covid 19 cases and deaths well beyond the country’s previous peak. Elsewhere credit is in a stable range but underperforming a more buoyant turn in other asset classes

Captor builds CDS use-case as it launches smart beta strategy
Stockholm-based Captor Fund Management is readying a fund that will aim to beat cash bond benchmarks by investing in CDS indices, adding to signs of broader appetite for the asset class

Broad sell off resumes as government yields head north
Caution is returning at the end of a stronger week for credit, as government bond yields resume their push higher. Asian and European markets followed the US lead from Wednesday with ubiquitous widening of spreads across indices and single names

Resurgent CSO market bets on ESG and new equity
After a challenging 2020 the synthetic bespoke market has begun this year in style, with a pipeline of deals, talk of new investors and hopes that ESG could play a key role in driving deal volumes