23 May 2018 by lberuti
It was probably one the choppiest sessions we have had recently even in the midst of the periphery risk off episode of the last week or so. Financials in particular were pushed back and forth as headlines regarding the progress of the Italian Premier nomination and Turkish interest rates hit the tape. It is probably the reason why some of the focus of the credit market was taken off the possible merger between BACRPLC ( Barclays Plc ) and STANLNPLC ( Standard Chartered Plc ) reported by the press. The rivals would have been exploring a potential merger, as part of a wide-ranging contingency plan being weighted by senior board members following pressure from activist investor Edward Bramson, who emerged as one of BACRPLC’s largest shareholders in March. Even though it was described as one of many ideas kicked by the bank’s management, it was enough to send STANLNPLC’s shares up 3% in the morning. It failed to create any excitement in creditland though. Both names followed the general trend and ended the day wider. STANLNPLC’s 5-year CDS merely underperformed BACRPLC’s by 1.5bps. They closed 4bps wider at 80bps and 2.5bps wider at 96.5bps respectively.