CDS takes brunt of coronavirus panic sell-off
European credit derivatives are among the hardest hit assets today amid a broad sell-off, as the fast spread of the coronavirus into Italy, Korea and Iran has brought a reappraisal of the impact it could have on financial markets

Credit traders’ kickstand: weaker mood, but primary drive strengthens
The primary market for high yield bonds is open again, after a pause around the US holiday on Monday, with issues in Europe today from the likes of SIlgan and Catalent striking a bullish tone and setting the scene for an expected flurry of deals next week. But this comes as credit generally weakens, with concerns about the spread and reappraisal of coronavirus cases causing spreads to push back from their recent tights

LCH goes live with Sub Fin CDS clearing
Clearing house LCH has expanded its CDSClear service to clear the iTraxx Europe Subordinated Financials index and its 30 single name CDS constituents

Credit retraces wider as coronavirus weakens sentiment
Credit and equity are proving resilient as fears mount about the impact of the coronavirus outbreak, but there is weakness in the tone of both asset classes today

Jupiter in talks to buy Merian for £370 million
Jupiter Fund Management is in talks to acquire Merian Global Investors for £370 million ($482 million), according to a joint statement by the firms

Axa terminates $14 billion fixed income mandate with AB as it takes assets in-house
Axa has terminated a $14 billion taxable-fixed income investment mandate with AB

Crossover and senior financials lead widening on coronavirus uptick
iTraxx Senior Financial and Crossover credits are taking the brunt of a move wider today, along with slumping stock markets, as fears about the spread of novel coronavirus took another turn upwards

JP Morgan AM launches first European multi-factor fixed income ETF
JP Morgan Asset Management has launched an inaugural fixed income multi-factor exchange traded fund in Europe

TUI enjoys 100bp two-week getaway
TUI is today’s biggest mover among constituents of CDS index iTraxx Crossover, after the Hannover headquartered travel company said it recorded its highest ever booking volumes in January – seizing market share after the collapse of UK rival Thomas Cook

Davidson Kempner hires ex-Barclays convertibles research head
DavidsonKempner, the investment management firm, has hired the former head of European and Asian convertibles research at Barclays to manage convertible bonds in its London office

Elfa partners with LMA to develop standardised ESG disclosure topics
The European Leveraged Finance Association, in partnership with the Loan Market Association, has launched an engagement programme to develop a standard set of material ESG disclosure topics on which issuers and borrowers can be expected to report publicly

UK financials push wider following Irish election surprise
UK and Italian financials are the weakest part of the credit market today, against an otherwise flattish backdrop, with the Irish general election result adding to concerns about how Brexit negotiations will fare this year

Credit Rendezvous: the outlook in 2020 across a dozen segments of the credit market
Welcome to the Credit Rendezvous, the first instalment of a regular feature published by Creditflux that tracks credit market dynamics in a dozen segments from investment grade, liquid loans, CLOs and CSOs all the way through to distressed debt. We view this as the meeting point for credit specialists across strategies to share their perspectives

Pimco plans to outperform come rain or shine with $4.5bn all-weather fund
Pimco has become the latest manager to fashion a flexible, all weather credit fund that invests across public and private markets, geographies and capital structures. The Newport Beach-based manager is hoping to raise $3 billion for the strategy. With half a turn of leverage, it could have up to $4.5 billion to deploy.

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.

Managers face ESG disclosure pressure under ‘ambitious and demanding’ EU regulations
New rules finalised by the European Union will shake up the way managers approach environmental, social and governance investing, sources say. The ambitious initiative is relevant for funds which have a specific ESG mandate — but will also be applicable to firms without an express ESG or sustainability focus.

BTIG hires strategist to cover US and European financials
Nandana Shenoy has joined BTIG in New York to work as a strategist covering US and European financials, according to an announcement by the brokerage

Italian financials put Europe's best foot forward as US outperforms
Financial credits are once again leading the way as the market continues this week’s sharp return rally

Mizuho names raft of European fixed income hires
Mizuho has signalled a push to bolster its European fixed income business with the Japanese bank announcing a raft of hires including jobs in structured credit, emerging market credit and credit sales

Hedge against coronavirus, says JP Morgan, naming 40 most exposed credits
With novel coronavirus cases rising at what looks to be an exponential rate, JP Morgan strategists have proposed a high yield hedge to address the rising threat to European credit spreads and listed 40 borrowers they think are most exposed to impact

Credit traders' kickstand: full reversal for Crossover as coronavirus spreads
European high yield CDS index iTraxx Crossver is ending the week back at around 230bp, in effect undoing all its improvement since the start of December

Skew trading discord as single name CDS snub index rally
The credit market’s reappraisal of risk today, following from Monday’s widening on coronavirus fears, comes with a marked dislocation between the performance of CDS indices and their underlying constituents

European financials outperform corporates as coronavirus spreads
Financial CDS is outperforming corporate credit today, and Europe outperforming the US, as the market jumps wider on rising alarm at the spread of China’s novel coronavirus

Credit event protocol goes into force with 60 extra sign-ups
The International Swaps & Derivatives Association is going live today with a protocol aimed at stamping out narrowly tailored credit events from the CDS market, having signed up 1,358 entities

Banco Sabadell joins forces with Amundi
Banco Sabadell and Amundi have announced a long-term strategic partnership, in a bid to boost fund business in Spain