08 June 2015 by lberuti
Today was undoubtedly a weak a session. Credit indices felt bid throughout the day and their march wider was only slowed by the constant threat of index-arbitrage lists being printed. But on a micro level, it felt somewhat different. Indeed, most of the credits were well behaved and most of them actually hardly moved at all. If you take the example of the High Yield universe in Europe, you can see on the above grapple that the vast majority of the names experienced little variations. But that was more than compensated for by a few outsized moves. A few names were tighter, with NELOOK (New Look) the clear outlier as the company announced it aims to refinance its whole financial debt with senior secured and senior unsecured bonds, sending its 5-year CDS almost 145bps tighter at 155bps. Much more were wider, but here again there were some outliers: HEMABV (Hema BondCo) +57bps, QUIBB (Financiere Quick) +108bps and MTNLN (Matalan Finance Plc) +51bps. If MTNLN had the excuse of publishing soft numbers that highlighted the challenges around their new distribution centers, QUIBB’s move seemed to be mainly down to bad positioning and illiquidity.