Credit funds at a glance (December 2023)
A round up of fundraising and people moves in credit

Major fund withdrawals undermine credit momentum
Credit funds are extending their run of inflows into the end of the year, but investment grade momentum took a dent last week due to investors in one big fund pulling their money

Credit and commodities diverge after China abandons zero-covid approach
Markets present a mixed picture at the start of the week, with Europe – still processing Friday’s US jobs numbers – opening cautiously after China’s retreat from strict zero-covid policies boosts commodity prices but raises fears of an infection wave

Rebuke for optimism as US jobs send market bulls running for cover
Investors’ determination to maintain an optimistic outlook on US Federal Reserve policy hit a point of reckoning on Friday, with hot US jobs numbers adding weight to committee members’ message that there is still a lot more work for them to do

Powell outlook brings risk buyers out in droves, but reality check looks soon to follow
Comments by US Federal Reserve chairman Jerome Powell on Wednesday on the pace of future rate hikes have prompted a sharp rally across global financial markets, including credit. But dissenting voices have already begun to point out the enthusiasm is likely overdone

Europe regains momentum versus US despite bank concerns
European outperformance is extending this week, taking investment grade and high yield spreads alike to their tightest prints since June relative to their US peers. But Credit Suisse remains a blot on Europe’s record as the bank’s short term risk levels continue a worrying trend

Credit Suisse slumps in bleak Monday, but high yield name sharply bucks trend
Financial markets are beginning the week on an uncertain footing, with anti-covid lockdown protests in China hitting commodity prices hard. But one European high yield company has bucked credit’s widening push with a massive rally

Credit Suisse tests investor nerves as market preps for Fed-focused week
Credit Suisse, which has been subjected to another week of intense scrutiny, is heading into the weekend with its credit spreads extending wider, after warning on losses and undertaking a capital hike

Swiss bank looks to plug holes but investors are hun-gruyere for risk
Credit Suisse is a rare, worrisome cloud in an otherwise brightening sky this week, as Europe extends its tightening trend in credit with the US standing at ease for the Thanksgiving holiday

Bond tenders bring outperformance as credit fends off commodity woes
Credit markets are managing to stay remarkably robust this week despite high volatility in oil prices and covid deaths in China undermining hopes for its economy to reopen

HIG adds capital raising clout with senior credit and PE hires
HIG Capital has added to its global credit and private equity businesses with three senior appointments

Outsized corporate rally puts financials RV in focus
The week is ending with resumption of credit’s recent rally after a brief pause, and Europe once again taking the lead over the US

BlackRock launches impact bond fund
BlackRock has launched a fixed income fund focused on green, social, and sustainable bonds as well as ‘impact’ MBS and municipal investments

UK nerves rattle Europe/US relative value trades, as Hunt seeks to reassure investors
A palpable mood of trepidation on Thursday around the UK’s autumn budget has brought widening of credit spreads, with European indices giving back gains they have made in recent sessions versus their US counterparts

European outperformance creates index options trading mismatch: Barclays
The recent outperformance of European credit over US has shifted the value of iTraxx index options, but CDX index volatility premiums stand out for having hit a new low

China property rescue plan keeps credit on front foot
China’s policy shift on covid rules and measures to prop up its ailing property market have brought a buoyant start to the week, despite financial markets having already rallied sharply last week

US lags as midterms, dollar and global slowdown weigh against broader rally
European and Asia outperformance over the US is extending at pace at the start of the week, with a strong improvement in spreads coming ahead of the New York market open

Europe-US convergence in play as week ends on strong rally
A big push tighter in credit spreads on Friday has extended the theme of European outperformance, with iTraxx Crossover briefly trading inside US high yield index counterpart CDX HY for the first time since July

Soft mood music abruptly dashed as Fed and BoE rile markets
The credit market’s strong run of improvement has come to an end this week, with the US Federal Reserve and Bank of England delivering a reality check to hopes of a more dovish path forward on interest rates

Fund performance: Wake us up when September ends
After a resurgent August, credit markets hit a rough patch in September, with every Creditflux index posting negative returns, and only 12.9% of funds in our listings showing a positive return.

Credit hedge fund returns (November 2022)
Credit hedge fund returns

Credit funds at a glance (November 2022)
A round up of fundraising and people moves in credit

Asia credit rallies sharply but rest of world holds firm ahead of Fed
While most of the global financial market hangs in the balance, Asian credit has undergone a second day of relief rallying having hit the year’s peak on 31 October

Europe leads broad rally amid speculation on softening rates timeline
After a cautious start to the week, credit markets have rallied ahead of policy decisions by the US Federal Reserve and Bank of England, amid growing investor anticipation of a slowdown in rate hikes as well as hope of a reopening Chinese economy

Credit pivots sharply as US returns to growth and ECB confirms record hiking cycle
After a wider start, credit markets reversed course Thursday having digested a strong US GDP reading and the European Central Bank lifting its base rate by 75bp – a move that confirms this as the region’s most aggressive ever hiking cycle