18 December 2013 by HCM
Thanks to tonight’s FOMC, volumes have remained healthy in December so far. Investors have been busy squaring risks off, and roughly $75bln of index were traded everyday on iTraxx and CDX. One of the themes over the last couple of days (but more generally since the summer) has been the outperformance of Europe versus the US, as spreads in the US seem to have reached a floor at 70bps. That was obvious today again, with the investment grade universe tighter by 1.5bps in Europe at 76.5bps while it was 0.25bps wider in the US at 69.875bps.