- Direct lending (9)
- Emerging markets (8)
- High yield bonds (18)
- Investment grade credit (21)
- Structured credit (17)
- CLO (17)
- Distressed debt (9)
- Credit derivatives (remove)
- Leveraged loans (9)
- Marketplace lending (7)
- Real assets (7)
IG and crossover indices converge while European CLO double Bs rally10 days ago
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
CDS indices edge wider and positive skew opens as Pershing Square puts on new hedge11 days ago
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
European CLO double Bs jump wider amid October macro worries - but seniors stand firm12 days ago
The fortunes of investment grade and high yielding European CLO tranches have gone in opposite directions in the last month. In a year where relative value has shifted several times, Creditflux analysis shows that new issue European CLO double Bs have blown out by 16.5% in October versus September, while triple A-rated notes have tightened 6.7% in that time
Credit rally rolls on as indices approach one-month tights18 days ago
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%)
US credit shakes off early jitters as CDX IG tightens 6.9%19 days ago
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
Indices retrace wider as contested election scenario looms19 days ago
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
Single names join rally as positive skews persist in Europe20 days ago
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
European credit takes lockdown restrictions in its stride as indices tighten21 days ago
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
Credit spreads wind back to February to bring shorts into focus1 month ago
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
Fallen angels push off-the-run index 25bp wide of CDX IG1 month ago
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
Investors get creative with new ways to trade the curve3 months ago
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.
Rampant technicals push cash and CDS in different directions3 months ago
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.
Bond selling pushes down Argentina CDS auction final price5 months ago
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
US and Europe diverge on credit spreads and more5 months ago
US and European corporate credit performance has diverged since cities went into lockdown in March, with Europe tending to do better. But the CLO market gives a different picture, with 17 US transactions pricing to four in Europe since 1 April, and with tighter investment grade spreads
CLO investors should be able to see live secondary trading levels7 months ago
Olga Chernova of Sancus Capital takes our credit quiz
‘Hoard credit’ says PM as markets swing7 months ago
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.
A round-up of fund performance7 months ago
Tranche traders aim to navigate default risk while staying clear of coronavirus contagion8 months ago
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.
IHS Markit mulls CDX EM growth and iTraxx ESG screen8 months ago
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.
Covid-19 outbreak rattles carry traders8 months ago
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.
Fund performance: CLO funds pick up where they left off8 months ago
A round-up of fund performance
EIB buys mezzanine tranche in Commerzbank SRT9 months ago
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
Correlation rise stokes mezz rally but adds to CSO woes9 months ago
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.
A round-up of fund performance9 months ago
Mohammed Kazmi of Union Bancaire Privée takes our credit quiz
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