28 March 2018 by lberuti
Following the weak close overnight in the US, European credit opened wider and saw some active long risk position covering throughout the session. The market never really recovered from it, and credit indices ended wider across the board, despite the rebound in equities. Credit did not feel great, but, given the carnage in stocks that took place after Europe left yesterday, some considered that today was a real test for the market. And relatively speaking, that move was largely shrugged off by European credit as the widening was contained. People most likely took comfort in seeing the S&P holding to its 200-day moving average and rejecting a more punitive leg lower for the time being. Confidence is thin on the ground, but the day of reckoning might not be around the corner just yet.