18 April 2016 by lberuti
Over the weekend, all eyes were on the long awaited oil producers meeting in Doha. It ended in disappointment, as OPEC members and major producers walked away without any agreement on a production freeze. That initially sent oil 7% lower and markets were weaker across the board. However, as the day progressed, investors holding short risk positions used that blip as an opportunity to reduce their exposure ahead of the performance of Mr Draghi on Thursday. The market was also helped by a strike in Kuwait, which will temporarily limit their oil production by 2/3 and sent the barrel back to unchanged on the day. In the end, despite the worst possible outcome regarding oil output, names that saw their risk premium increase on the day were few and far between. Credit indices and their fair values closed tighter in investment grade and high yield alike, giving the above grapple its greenish colour.