Fed hike speculation holds sway over Europe and Asia despite US holiday
Credit markets have opened the week marginally tighter, with Europe and Asia cautious on Monday in the absence of a US trading session, and US Federal Reserve statements likely to drive sentiment in the rest of the week

Europe trades heavier than US as market baulks at new hikes
Credit spreads have resumed their push wider, with European indices once again under more pressure than their US counterparts

Credit rout eases as ECB holds emergency meeting ahead of Fed rates decision
Credit markets are undergoing a relief rally, even as the US Federal Reserve prepares to deliver its moment of truth decision on policy tightening and the European Central Bank holds an emergency meeting to address the recent sell-off in risk assets

Euro IG credit looks set to outperform US, HY and equities: Barclays
An outlook of elevated inflation and low growth favours credit over equities, and euro investment grade over high yield, according to European credit strategists at Barclays

Fed fears extend big market slump
Credit spreads have pushed sharply wider again at the start of the week with all eyes on the upcoming US Federal Reserve meeting, as investor aversion to risk assets extends following Friday’s consumer price index number that caused financial markets to reel

Market jitters mount as US delivers May CPI
Credit spreads have moved sharply wider for the fourth day straight as investors digested the European Central Bank’s hawkish turn and watched with trepidation for the US to reveal its May consumer price index numbers

European credit hedging extends as investors watch for ECB hiking signal
European underperformance of US credit has extended into a third day, with investors continuing to hedge exposure ahead of the European Central Bank’s meeting statements

CLO top stack offers best value versus corp debt after junior tranche rally: Barclays
Having lagged in the recent market recovery, CLO triple A paper looks attractive versus corporate investment grade and the CDX IG credit derivatives index

Duration, decompression and dispersion disconnects grow
Investors’ reassessment of the time they may need to hold on to positions — as well as the limited opportunity for some borrowers to access new capital — are adding to a growing list of factors causing credit market prices to disconnect

Fund performance: Credit hits another bump in the road after March revival
There was more upheaval for credit funds in April, reversing the mini-recovery in March as 40% of funds made positive returns, a decrease on the 47% in March

Credit hedge funds (June 2022)
Credit hedge fund returns

   

Ucits at a glance: Diamond shines after dull start to year
Ucits funds have continued to arrest the slide that followed the dip in February, as 37% of funds in April saw positive returns

Russia oil ban accord unites markets in sell off
EU leaders’ compromise agreement on banning Russian oil imports by sea has presented a united front few may have thought possible only days ago. But financial markets have not reacted positively, with risk assets selling off as the euro slumps and oil hits its highest level since March

Asia sets pace for Europe as rally extends in US absence
Credit market investors have resumed their optimistic stance on Monday, buoyed by a weaker US dollar and China reopening its economy after lengthy covid-19 restrictions

Fund outflows extend despite sharp improvement in credit performance
This has been a much better week for credit and equity market performance than last, but that has not stopped the tide of investors looking to withdraw their money from funds for such risk assets

Retailers, travel cos and Italian banks lead charge as market rally accelerates
Retail companies have been resurgent on Thursday as the credit market’s relief rally gathered pace, with Europe seeking to catch up with the US following its strong surge

Bespoke bond baskets on the rise as investors seek targeted portfolio trades
High yield index replication and accessing illiquid exposure are two factors building momentum for a new investment approach that bundles bonds into a single risk piece

Property giant takes a tumble as European fortunes diverge
Adler Group, the German real estate giant, is once again coming under intense pressure in the credit market amid reports the country’s financial watchdog has begun a criminal investigation into its dealings

Credit off to stronger start as dollar longs get squeezed
Financial markets are off to a better start this week, with risk assets repairing some of their recent damage as the US dollar eases back from the highs it has hit against other currencies

Credit fund bleed out looks hard to stem, as hawks ignore macro gloom
Ever more investors are running to safety as risk assets tally up another rough week, with strategists warning there is no end in sight for credit fund outflows while central banks hold their course on rate hikes

Bond / CDS basis in play as heavy market rout extends
The rout of financial markets has resumed at pace on Thursday, with sizeable moves that add to relative value disparities between cash and synthetic credit

US retailers hit hard as inflation and dollar spark big sell-off
Inflation worries and a strengthening US dollar have once again upended the credit market’s fragile confidence, taking spreads on a violent lurch wider with the US underperforming Europe

European markets give up some gains after outperforming US
Credit and stocks have improved on Tuesday, as investors attempted a momentum shift, but Europe is already giving up some of its gains after outperforming the US for a brief spell

Investors hold tight amid Chinese slowdown and Nordic affront to Russia
Financial markets are opening the week on a cautious tone, as Chinese economic data weakens the global growth outlook and new Nato applications intensify the stand-off with Russia