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Let’s Make The Market Trade Again!

20 January 2017 by lberuti

If you are a passive investor in credit indices, 2017 has so far delivered the perfect outcome. There was hardly any volatility. Trading ranges have been incredibly narrow. All indices are tighter or hardly wider, which means you have even earned an extra something on top of your carry. If you are an active trader, you are probably pulling you hair off. The market is priced to perfection! Everyone focuses on the positive aspect of Trumpenomics. Volatility has been crushed, and volumes have been anaemic. Today was no different (CDXIG and CDXHY unchanged on the day at 66bps and 351bps respectively; iTraxx Main and iTraxx Crossover unchanged at 69bps and 286bps; how about that for a strike?) , and people sitting on trading floors probably spent the best part of the morning watching the mighty Roger Federer (almost) back to its best and the afternoon trying to name former presidents, vice presidents and their spouses during the inauguration ceremony. Let’s hope the market will be ready to trade again in the very near future.