28 March 2014 by HCM
The end of the quarter is dangerously close and no one wants to spoil the party. Most of the risky assets (at least credit and equities) in developed markets are flat or up on the year and investors look quite happy about it. As there was not much in terms of news on the macro or micro front, the path of least resistance was to push almost everything a tad higher. Since the beginning of the year, such an environment has been systematically synonymous of compression and today was no exception. iTraxx Crossover outperformed iTraxx Main, and iTraxx Financial Subordinated outperformed iTraxx Financial Senior. When there is no obvious reason to do otherwise, compression is at work.