05 November 2015 by lberuti
Like every other first Friday of the month, tomorrow will see the release of the NFP (change in the nonfarm payroll) in the US. People use that as an excuse today to largely remain on the side lines and volumes were definitely subpar. Even if the market is pausing for thought at the moment with credit indices roughly unchanged across the board, there is no point in denying the strength of the recent rally. The results of the reporting season may have played a part, but that move was largely driven by Central Banks actions (one should probably rather say talks at the moment) around the globe. During the most recent period, there is another striking feature of the market. iTraxx Crossover has compressed materially against iTraxx Main. This has been a constant theme when QE expectations are raised in Europe. But the recent woes of a number of investment grade companies (VW among them) certainly did not help either.