30 January 2014 by HCM
The European Xover names failed to rally today while the European investment grade names are closing unchanged. The US credit complex was stronger that the whole European credit complex. Since the start of the market correction, the relationship between the European credit and the US credit was rather strong. However, the market is wondering if the strong outperformance of the European Credit is out of breath and if the European Credit is eventually at risk with the tapering (If you click on the 1Y interval after reading this comment you can observe the outperformance of the European Credit over the past year). With the domino effect, we should keep a close eye on the European High Yield credit in the following days.