27 February 2017 by lberuti
It was a day of muted price action, and there were no major moves in creditland. The overall tone was positive though, and credit made up part its underperformance of the last few sessions compared with equities. Investors are still keeping a very close eye on the French elections. The failure of the most leftist candidates to forge an alliance over the week-end and the associated boost it gave to candidates perceived as more market friendly, send the OAT/BUND spread below 70bps, its tightest level in almost 2 weeks. That move was reflected on financials, and more specifically banks, which serve as bellwethers regarding political risk in Europe. iTraxx Financial Senior outperformed iTraxx Main (iTraxx Financial Subordinated even more so), iTraxx Main outperformed iTraxx Crossover, and iTraxx Main outperformed CDXIG.