Banks and high yield corps lead charge as results prompt European rally
High yield corporate credit is today's outperforming part of the market as European credit rallies back from its recent wides, as the latest round of earnings proves stronger than many had expected

AT1s come into focus after financial CDS rally
The credit rally in June and July has favoured CDS referencing financial borrowers, but sources note a breakdown of usual market relationships that has left pockets of value for investors

High yield traders take stock amid Crossover/HY compression
A convergence trade is underway this week in the high yield credit market, with US index CDX HY reaching its nearest level versus European counterpart iTraxx Crossover since the start of June

Travel firms lead sell-off on second wave fears
Travel related companies are in focus for European credit investors at the start of the week, following the UK government's decision to re-impose a 14-day quarantine on people arriving from Spain

Swedish fund nears public listing after big gains on CLO and tranche trades
Stockholm-based Ymer SC is moving forward with plans to list its structured credit fund on the Nordic Growth Market exchange in Sweden

First movers in focus for CDS as market grinds to new tights
First is the operative word in corporate credit movers this week, with UK transport firm Firstgroup leading European CDS improvers while FirstEnergy Corp heads the worst performers in the US

Shot in the arm for US credit as vaccine results prompt outperformance
US credit markets have gained a chance to catch up with European improvement this week, after positive results from a coronavirus vaccine test prompted US outperformance, particularly in high yield

Credit Rendezvous: record fiscal stimulus provides pick-me-up
Credit markets had a mini bounce-back in the second quarter as central banks poured cash into the economy. But there is great uncertainty about the effects of a second wave of coronavirus. As part of our quarterly report on credit - the Credit Rendezvous - Creditflux spoke to experts across 12 segments of the credit market

US/Europe gap widens as states roll back reopening plans
Decoupling of US and European performance is the stand-out feature of credit this week, in which fears of a pandemic second wave and further US/China wrangles hold market improvement in check

Europe leads opening rally, with Asian boost to autos, banks and commodity traders
A bullish tone in Asia around the economic recovery from the coronavirus pandemic has carried over into the rest of the credit market at the start of the week, taking European spreads tighter and pointing to a solid opening for the US after its long weekend

Europe outshines US despite caution on inflows and second wave
A week characterised by lower volatility and awash with returning European high yield issuance is ending on a cautious tone, with the US market on holiday and 'second wave' covid concerns bringing a pause to the credit rally

Curves and skews come back into play as CDS volumes swell
The rapid growth of the CDS market during the coronavirus pandemic has been consolidated in the second quarter, with investors putting on trades not seen in such volume since the 2008 financial crisis.

Fund performance: CLO funds keep up the momentum for second month running
May returns have been led by continued momentum from CLO funds. In the last month, funds that invest in CLO notes in some capacity have made up 90% of our top 10, while 97% of funds listed generated positive returns - an improvement of 15% on last month's figures.

Credit funds at a glance (July 2020)
A round-up of fundraising and people moves

Ucits at a glance: Ucits recover lost ground
The foot has come off the gas for many funds - 57% of funds did not break the 2% return barrier.

Index tranche volumes go into overdrive as CSOs stall
CDS index tranche trading has gathered pace during the coronavirus pandemic, putting the asset class on course for a post-2008 crisis record.

European ESG index kicks off 10bp tighter than parent index
A new version of the iTraxx Europe index screened for environmental, social and governance standards began trading three months after its intended roll-out was delayed by coronavirus volatility

US swaps rule relaxation brings underperformance of bank CDS
US Federal Reserve changes to the Volcker rule has caused bank stocks to surge, but credit market perceptions are less positive

Algebris leads monthly returns in new world matrix
Algebris Macro Credit's return submission for May was among the best non-CLO/ABS fund performers out of those Creditflux tracks, adding to a strong turnaround for the strategy

VW gives EuropCar a lift
EuropCar is one of the biggest movers in the credit markets today, on reports that German carmaker Volkswagen is in talks to buy the French car rental firm

Lufthansa climbs as shareholder airs bailout grievances
Deutsche Lufthansa is among today's biggest underperformers in credit and stock markets, as a battle brews with its largest shareholder over the terms of a €9 billion government bailout for the airline

US jitters set in ahead of monthly options expiry
A gap has opened up again in the performance of European credit versus US ahead of this month's CDS options expiries, after a shakier trading session in New York yesterday

SocGen promotes cross-asset solutions specialist
Societe Generale has named a global head of economics, cross-asset and quant research

Big reverse rally as hopes rise for US stimulus
Credit markets are rallying sharply today, along with rising stocks, on expectations the US is about to deliver another stimulus package to help address the damage caused to its economy by covid-19

Relief rally follows relative value trading on US/Europe credit and tranches
Credit markets look set to end the week on a cautious retracement tighter, after several sessions of heavy reminders the coronavirus crisis is far from over and that sector/geographical selection remains important