23 February 2016 by lberuti
The last few days have gradually set the scene of a lower volatility environment as far as credit is concerned. This is slowly bringing confidence back to the market and we have seen a steady stream of protection selling across the board on credit indices over the last few days. Today credit indices significantly outperformed equities which were heading south in the afternoon while credit was barely moving. But the feel-good factor is not affecting all sectors indiscriminately, and Financials still appeared weak today. Yesterday HSBC’s (HSBC Holdings Plc) results disappointed investors, and today STANLN’s (Standard Chartered) did not fare any better and set the tone for banks, which underperformed the rest of the market. Even though Financials is still the most actively traded sector, liquidity felt challenging at times, and aggressive protection offers were few and far between.