18 May 2016 by lberuti
It was an uneventful credit option expiry day. Once again daily changes were minimal, and today even intraday ranges were tight (1bp on iTraxx Main and CDXIG, and 4bps on iTraxx Crossover). Most of investors’ attention is still going to cash, but everyone expects Brexit concern to take center stage over the next few weeks. Headlines will attract more attention, not only ones announcing discounted seats on Ryanair’s flights so that UK citizens can fly home the 22nd and 23rd June and allow them vote “Remain”! Today, a poll by Ipsos Mori shown “Remain” leading by 55% to 37% in a substantial move from other recent similar polls showing the in and out campaigns running neck and neck. Apart from triggering sharp moves of the Pound (+0.80% against the USD and +1.60% against the Euro), it also sent the 5 year CDS of most UK banks tighter, making them the outperformers of the day.