11 April 2014 by HCM
Today was the first sizeable move wider in credit spreads since the launch of the most recent series of indices. The move was broad based and hardly any name was spared. That said, it was orderly and happened during the morning, while most of the afternoon was spent in a fairly tight range (1bp on iTraxx Main and 4bps on iTraxx Crossover). So far, the trend is still towards risk reduction and deleveraging rather than new positions being added. It is therefore easy to spot crowded longs (which are underperforming) and crowded shorts (which are hardly moving despite the general widening).