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I Decompress, You Decompress, They Decompress

04 August 2015 by lberuti

Decompression was one of the themes often mentioned today at the close. With the continued pressure applied on ABGSM (Abengoa SA), iTraxx Crossover underperformed slightly iTraxx Main. iTraxx Financials Sub (+6bps on the day @ 155bps) underperformed iTraxx Financials Senior (flat on the day), and within the financial sector, high beta names underperformed low beta ones. Core bank names closed 1 to 2bps wider, while peripheral names closed 5 to 7bps wider. And among the peripherals, Spanish banks were the most active and continued to underperform, probably on the back of the ongoing weakness in Latin America.