09 October 2015 by lberuti
Today’s session was strong across the board with all credit indices closing tighter. In fact, it was only the continuation of what we have seen all week, during which the grind has been relentless. It seems that most of the bullish positions had been unwound into the end of September, and all market participants felt a bit too short risk. With positive vibes from the commodity space and Emerging Markets, with less negative noise from automakers which previously contributed to the negative sentiment, with an issuance pipeline that slowed ahead of the reporting period, with central banks confirming their accommodative stance, buyers of protection were few and far between. Credit indices have tightened as fast as they widened after the roll. While they were 20% wider 10 days ago, the new series (25 in the US, 24 in Europe and Asia) are now roughly trading at the level at which they were issued 3 weeks ago.