22 July 2014 by HCM
Recent phases of volatility proved that the market is a bit nervous currently, but it would be very difficult to argue that the mood is bearish. There is no momentum in the phases of weakness. Unless investors are consistently fed with negative news, risky assets are unable to go down. A day without news of the situation going worse in Ukraine and credit indices cannot move except tighter. A day without news regarding what is actually going to happen to the debt of the different parts of the Espirito Santo Group and iTraxx Financials Senior and Subordinated outperformed iTraxx Main. So today all risk premia went tighter in unison, and part of the decompression move that took place last week was reversed. It is summer and people would rather not get questions asked about their positions.