14 February 2014 by HCM
Over the last few sessions, a lot of investors have been left scratching their head regarding what could happen next to the market. Even though assets have been performing well during the last week, most people are still concerned about emerging markets and are wondering what the real direction of the American economy is after a raft of disappointing statistics. This has translated into tighter trading ranges on the credit indices, somewhat lower volumes, and also a convergence of bases (difference between the quoted price of an index and the fair value derived from its constituents) towards 0. When things are moving slower, market inefficiencies are less obvious.