Ucits at a glance: Ucits start year on high note
A round-up of ucits fund performance

Huge CDS gap yawns between US and Europe, despite Fed intervention
Having crossed paths in a rare moment of compression on Monday, iTraxx Europe and its US counterpart CDX IG have since undergone one of their biggest moments of dislocation since the global financial crisis, as an emergency rate cut by the Federal Reserve failed to comfort investors about the impact of the coronavirus on the US economy

McClatchy bonds point to 50 cent CDS pay-out as auction deliverables finalised
McClatchy CDS in on course to pay out around 50 cents, based on cheapest bonds to deliver, after the Americas Determinations finalised five deliverable obligations for the media company’s credit event auction next week

Europe rallies hard after CDX IG closes tighter for first time since June
Volatility in credit remains heightened due to the coronavirus outbreak, but movement has become two-way, with European CDS indices surging tighter today after US index CDX IG ended yesterday’s session tighter than iTraxx Europe for the first time in nine months

Credit reels back to January 2019 levels as coronavirus impact spreads
A more positive opening for European credit today proved short-lived, as coronavirus developments caused the market to reverse its modest improvement early on to careen back to some of the widest levels in over a year

Credit traders’ kickstand: a year comes undone in a week as world faces coronavirus moment of truth
As the coronavirus outbreak reaches a 'decisive point', according to the World Health Organisation, one of most volatile weeks in recent memory has hauled credit spreads from their post-financial crisis tights to much wider levels last seen in the first half of 2019 and, in the case of emerging markets, more than a year ago.

Crossover hits widest print since September, 70bp back from the tights
iTraxx Crossover has surged 19bp wider today, according to IHS Markit, in a sixth successive session of coronavirus driven sell-off that takes the index to 273bp – 70bp wide of the post-crisis tight print it reached in early January

Bloodbath in primary as credit bleeds months of profit
Some primary market bond issues that investors lapped up in the heady weeks of January are being put to the sword as February ends, while the coronavirus-led downturn in credit has squandered several months of gains in the CDS market

McClatchy initial list points to 48 cent CDS pay-out
McClatchy CDS looks set to pay out around 47.5 cents to protection holders, if bonds on an initial list of deliverable obligations for the media company’s credit event auction make it to the final list

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

McClatchy CDS auction set for 10 March, despite fast-track request
Dealers on the Americas Determinations Committee have unanimously agreed to hold an auction to settle McClatchy CDS on 10 March, ignoring a request to expedite the process ahead of the media company’s scheduled plan of reorganisation

Super-fast CDS auction demanded on McClatchy
The DC has ruled that media company McClatchy triggered a bankruptcy credit event on 13 February. But it is yet to set a date for the credit event auction

EIB buys mezzanine tranche in Commerzbank SRT
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

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

Axa IM launches SRT fund after record-breaking 2019
Axa Investment Managers says it has held a first close on a fund that invests in significant risk transfers

McClatchy bankruptcy adds to slew of US media credit events
The McClatchy Company, a media sector constituent of CDS index CDX HY, has triggered a bankruptcy credit event, the Americas Determinations Committee has ruled

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

Whiting Petroleum CDS gaps wider as it engages debt advisors
Credit event concerns have taken CDX HY constituent Whiting Petroleum to a recent wide print, after the energy exploration firm’s management held talks with advisors to find ways to remedy its capital structure

Sprint Comms CDS races tighter on T-Mobile merger nod
Sprint Communications, a telco constituent of US high yield index CDX HY, was by far the biggest mover in CDS yesterday, after the Federal Court in New York approved the company’s proposed merger with T-Mobile US

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

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