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Early Christmas at Dixons

17 December 2013 by HCM

The day before the much awaited final FOMC meeting of 2013, no one was expecting a bold move from the market as a whole. This grapple shows that the tone was somewhat positive, but there was a lot of noise and credits did not move in unison. It took a reassuring set of results from Dixons to make it stand out from the crowd, and the announced deleveraging of the company took the 5 year CDS tighter by more than 20bps (roughly 1% of excess return). Risk premium has not been this low for the name since early 2008.