27 September 2017 by lberuti
Since the roll, it is fair to say that indices have stayed in a very narrow range, and today was no exception. Credit opened firm as equities were boosted by details on the US tax plan overnight and a weaker euro. However, rates sold off aggressively and the move tighter stalled. The late dip in equities did not impact credit indices, and the intraday moves were once again very limited. Financials tried to rally as it is usually accepted that higher rates are a better environment for them, but hedges were reset throughout the session. iTraxx Financials series 28 has not been trading well since it was issued a week ago, and it has underperformed all other indices. iTraxx Financials Senior, which closed at 60bps, and iTraxx Financials Subordinated, which closed at 137bps, are the only 2 indices to be wider on that period. iTraxx Main is unchanged at 57.5bps and iTraxx Crossover is 2bps at 254bps.