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Fatigue Is Setting In

11 June 2015 by lberuti

It was another day dominated by Greece related headlines. The positive impetus from yesterday afternoon carried into the morning session, during which the tone was constructive. But then in the afternoon, we had news that the IMF still has major differences with Greece in most key areas. That sent iTraxx Main 2.5bps wider from the tights of the day to 67bps and iTraxx Crossover 12bps wider to 300bps. While indices are bouncing around, there are obvious signs of fatigue setting in among single name credits. Variations are contained across the board as shown by the pale shades of green and red that you can see on the above grapple (remember the bigger the move, the brighter the color). Trading is definitely happening on the few names with specific news (and there are some like PORTEL issuing a 6 year bond, or ALOFP – Alstom – whose merger with GE is coming under scrutiny by the EU), but most individual credits seem currently a bit left on the side lines.