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29 results found Showing page 1 of 2

  • Convexity pushes high yield bond basis to the forefront
    Compression had become the watchword of the market as Creditflux went to press, providing justification for high yield versus investment grade macro plays, wide-end long positioning and selective tight-end shorts. But the more important driver, say some relative value investors, was convexity

    1 month ago
  • Zombies demand brain work from tranche traders
    Outperformance of junior tranches and underperformance of senior was the big theme in CDS index tranches going into December. But the picture began to change as Creditflux went to press

    1 month ago
  • Little room to move in IG’s vice-like grip
    The absolute tightness of credit has left investment grade specialists a tough challenge to find value in the coming year, with neither scope for spread improvement nor encouragement to go short

    1 month ago
  • Compression plays out as HY and European CLO double Bs outperform
    Investment grade and high yield credit spreads have tightened in sync with each other this week, but CDS and CLOs alike underline that the big theme over the past month has been compression between investment grade and high yield

    1 month ago
  • IG and crossover indices converge while European CLO double Bs rally
    iTraxx Crossover is again outperforming Main today with the investment grade index widening 0.11bp to 52.56bp while the crossover index is 2.42bp tighter to 296.99bp. Meanwhile bank research signals that junior CLO tranches could benefit as investors look at covid industries through a different lense 

    2 months ago
  • CDS indices edge wider and positive skew opens as Pershing Square puts on new hedge
    Credit indices have widened a touch this week but they’re back in focus with reports that Pershing Square Capital Management, led by Bill Ackman, has this week used CDS indices to hedge parts of its equity portfolio

    2 months ago
  • Credit rally rolls on as indices approach one-month tights
    CDS indices are approaching their mid-October tights as reality seeps in of a divided US government and, consequently, little chance of dramatic corporate tax increases. Yesterday, iTraxx Main led the way, tightening 5.3%, followed by CDX NA HY and CDX IG (both 4.5%) and iTraxx Crossover (2.8%)

    2 months ago
  • US credit shakes off early jitters as CDX IG tightens 6.9%
    Credit spreads have reversed course yet again to join the rally in equities today. The Dow Jones Industrial Average up 2.5% today and credit is following with investment grade indices leading the way

    2 months ago
  • Indices retrace wider as contested election scenario looms
    Credit is moving wider this morning as a contested US presidential election looms. This comes as incumbent Donald Trump threatened to go to the US Supreme Court in the early hours of this morning, citing election fraud and calling to stop votes being counted

    2 months ago
  • Single names join rally as positive skews persist in Europe
    Single name CDS has joined the rally with European credit moving tighter this morning to continue the momentum from Monday. iTraxx Main is trading 2.1 basis tighter at 61.1bp today, according to IHS Markit, having shed 1.9bp yesterday. Similarly, iTraxx Crossover at 348.2bp has tightened 9.7bp today after tightening 9.1bp yesterday

    2 months ago
  • European credit takes lockdown restrictions in its stride as indices tighten
    European credit spreads have held firm this morning despite the re-emergence of lockdown measures with the UK government announcing on Saturday that new restrictions will come into play on 5 November

    2 months ago
  • Credit spreads wind back to February to bring shorts into focus
    The credit rally since April has opened up an opportunity to go short credit, say fund managers, with spreads back to where they were in late February

    3 months ago
  • Fallen angels push off-the-run index 25bp wide of CDX IG
    A  gap of over 25 basis points has formed between US investment grade CDX IG and its recently off-the-run predecessor series 34. At Credit Dimensions, Creditflux’s synthetic credit event, panellists highlighted a major shift in composition between index series that has opened up relative value plays between them

    3 months ago
  • Investors get creative with new ways to trade the curve
    Credit index curve trading is gaining new features going into August, evidencing deeper liquidity for CDS strategies, but also that investors already have one eye on the upcoming September rolls.

    5 months ago
  • Rampant technicals push cash and CDS in different directions
    Central bank interventions, primary market issuance and high yield defaults have conspired to create major distortions in credit performance, which sources say are ripe for opportunistic trading.

    5 months ago
  • Bond selling pushes down Argentina CDS auction final price
    An auction on Friday to settle Argentina sovereign CDS returned a final price of 31.5 cents, three points lower than initial bidding due to a large physical settlement interest to sell bonds

    7 months ago
  • ‘Hoard credit’ says PM as markets swing
    As Creditflux went to press, the covid-19 death toll in Italy surged by 700 after two days of slowing, and the US congress agreed a $2 trillion stimulus package.

    9 months ago
  • Tranche traders aim to navigate default risk while staying clear of coronavirus contagion
    The CDS market is navigating between two sources of risk for equity and mezzanine high yield index tranches. The default of US media company McClatchy has focused idiosyncratic concerns, while the spread of the coronavirus has stoked fears of a systemic sell-off.

    10 months ago
  • IHS Markit mulls CDX EM growth and iTraxx ESG screen
    Increasing the portfolio size of CDX EM and consulting on an ethically-screened version of iTraxx Europe are among the projects index administrator IHS Markit has been working on ahead of the 20 March roll.

    10 months ago
  • Covid-19 outbreak rattles carry traders
    The coronavirus panic hitting financials markets at the end of February has been a strong driver of relative value trades, with CDS underperforming both cash bonds and equity, while financial names felt the heat more than corporate borrowers as geographical risk came into play.

    10 months ago
  • EIB buys mezzanine tranche in Commerzbank SRT
    Commerzbank has launched a €1.5 billion significant risk transfer with the European Investment Bank (EIB) announcing that it has invested in the mezzanine tranche of the securitisation

    11 months ago
  • Correlation rise stokes mezz rally but adds to CSO woes
    Below the calm surface of the credit market, correlation has been churning and creating dislocations rich with reward for index tranche traders but complicating bespoke issuance, say sources.

    11 months ago
  • Falling correlation reignites passion for index tranche trades
    Dispersion in the global corporate credit market is rekindling interest in correlation trading, with dealer sources reporting that a late surge lifted 2019 index tranche volumes to $250 billion.

    1 year ago
  • Rising idiosyncratic risk leads to calls for high yield index tranche fix from traders
    As sources of funding dry up for the weakest borrowers in the credit market, some correlation traders are calling for an overhaul of CDX NA HY index tranches to make trades on wide-end dispersion more effective.

    1 year ago
  • Five-year bespokes movement leads to managed CSO talks
    Longer dated synthetic bespoke tranche business could soon receive new impetus, with dealers and investors ramping up talks about re-establishing managed portfolios as a common feature of the CSO market.

    1 year ago

29 results found Showing page 1 of 2

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