HY set to roll after rocky week scuttles investors
Market participants are holding their breath ahead of the roll of US high yield index CDX HY, after a week of volatility and fund outflows

Credit optimism returns on Evergrande and Fed but big questions loom large
Credit markets have moved onto a firmer footing, with one day of this week’s US Federal Reserve meeting out of way and troubled Chinese real estate behemoth Evergrande having negotiated a domestic yuan bond payment. But there is plenty of room for upset in the coming sessions

Dealers tweak IG roll changes but rising star HY names still don't make cut
Dealers have revised their list of provisional changes to the CDX IG investment grade index ahead of its roll to a new series next week, with administrator IHS Markit citing recent trading activity as reason for the move

Credit shrugs off ECB tapering signal, but strategists warn of IG vulnerability
Credit markets are ending the week on a firm footing after taking in their stride the European Central Bank’s message that it expects to limit asset purchases in the coming quarter. But some parts of the market look more vulnerable than others, say strategists

UK retailers get frosty reception after price hike warning
UK retailers face spread widening pressure on Tuesday against an otherwise flattish backdrop, as supply chain issues stack up prompting concerns of winter stock shortages and higher prices for goods

Rally resumes as investors read US job miss as tapering delay
Credit and equity markets have opted to rally - albeit far from emphatically - after digesting the import of the US missing its August monthly news jobs target by a big margin, which could bring a setback for hawkish central bank voices

High yield compression has one last push after real yields turn negative, says BofA
With real yields for European high yield bonds having turned negative, Bank of America credit strategists see "one last hurrah" for spread compression trades

Rising stars vie with swooping hawks as Fed deliberates
Rising star companies moving from high yield to investment grade could be a valuable source of returns for credit investors in coming months, say sources

Crossover names drive rally on strong earnings as European traders return
Several high yield borrowers have made strong improvements on Tuesday as the post-Jackson Hole credit market rally has extended from Friday, with European traders returning after their long weekend

Retailer jumps on PE rumours while markets stay rooted in Jackson Hole
UK supermarket retailer Sainsbury's has been a notable mover in credit this week, as the wider market waits tentatively on Friday's Jackson Hole movement in the US and fund outflows signal nervousness about US Federal Reserve policy and escalating turmoil in Afghanistan

Chinese credit makes gains as Europe and US slump on Fed taper fears
Chinese credit spreads on Thursday depicted an island of optimism as global credit and stocks - including its own - slumped against a mounting confluence of concerns

Travel co among underperformers as credit gives up gains
European credit is softening away from its recent tights in what is shaping up to be a fourth week of range-bound trading, with credit strategists identifying valuations as a key obstacle to improvement at the index level

US plays catch up with Europe as spreads reconverge
There has been a slight softening of European credit on Tuesday, even as stocks hold onto their record highs and US credit spreads take their chance to close the gap after recent underperformance

Triple Bs gain momentum as IG buyers pick best spots
The absolute tightness of credit spreads has led many to lament their chances of delivering strong returns in 2021, while stressing the need to move down either the quality or duration curve. But even within investment grade, European and US managers are still finding pockets of value

Publishing boost for French firm but China sours wider market
Lagardere is a notable positive outlier in another off day for the credit market, after China turmoil rocked stocks and sent spreads wider

Credit Rendezvous: And breathe...
The unanimous verdict is that credit spreads will be moving wider – they have to. But the difficulty credit fund managers face is predicting when the next sell-off comes and how sharp it will be. In the Q3 instalment of Creditflux’s Credit Rendezvous, the over-riding message from portfolio managers is that there’s little point in taking on too much risk. The report features the views of prominent credit figures including Paul Horvath (Orchard), Himani Trivedi (Nuveen), Ronnie Jaber (Onex), Graham Rainbow (Alcentra) and Michelle Russell-Dowe (Schroders). The report looks at 14 segments of the market including CLOs, direct lending, leveraged loans, distressed debt and credit derivatives.  

Credit grind pushes back volatility bets
With recent weeks having all-but crushed volatility from the market, uncertainty about the timing of future risk triggers is leading credit options traders to spurn traditional horizons to focus on longer-dated expiries

Credit slumbers in departure lounge as airline equities take off
Credit and equity markets have been in a balancing act on Tuesday between the positive and negative implications of surging oil prices and Germany opting to relax travel restrictions

Chicken supplier takes courage from earnings improvement
Boparan, one of the riskiest companies in the European high yield credit market, is among the biggest movers in bonds and CDS on Wednesday, as the market resumes its rally to the tightest prints of the year

Triple Bs in the firing line as Fed turns hawkish, says BofA
Triple B and long duration credit are likely to be casualties of tightening central bank policy, Bank of America strategists have warned. But high yield and cyclical investment grade sectors could fare better

Credit grind makes it five days out of five in bullish week
Credit markets are heading into the weekend on a fifth straight day of improving spreads, amid signs of returning economic confidence and appetite to invest in the asset class

Financials and high yield outperform as rally gathers momentum
Credit spreads are enjoying a second day of improvement to regain some of the ground they lost last week, with Italian banks, commodity traders and higher yielding borrowers among outperformers in a broad rally of both indices and single name borrowers

Saipem moves sharply on Mozambique moans
Saipem, the Italian energy engineering group, was a big underperformer in a flattish credit market on Wednesday, as uncertainty over a project in Mozambique weighed on first quarter results and its outlook for the year

Single names make big gains as indices dither
Single name CDS in the US and Europe have strongly outperformed from the start of the week, rallying sharply and across most of the credit universe despite direcctionless trading for indices

Corp hybrid popularity mounts, but strategist outlooks diverge
Corporate hybrid bonds are becoming a focal point for investors in the second quarter, with one bank's credit strategy team making them a top pick to trade spread compression while another's has expressed caution on their likely performance