Commentators on the financial markets can sometimes be prone to hyperbole, but it is surely no exaggeration to state that the next few days are crucial in determining sentiment for 2015 and beyond. First up is the ECB, and the expected QE announcement…. Login to Read More...
The precipitous decline in the oil price has taken some of the attention away from Greece, albeit until the elections next week. Less than four months ago the price of WTI crude was more than $100 a barrel; now it is languishing below $50…. Login to Read More...
It seems like an aeon ago that a relatively small country in south-eastern Europe held the fortunes of the global economy in its hands. But less than two years has passed since Greece’s debt was restructured, and it is all too apparent that the sovereign still has the capacity to create a noise that belies its modest…
If one were to look at the week-on-week change of the main credit indices, it would be perfectly understandable to assume that it was another uneventful few days in the markets. The Markit iTraxx Europe was trading at 61.5bps on December 18, just 1.5bps wider than the previous week. The Markit CDX.NA.IG was 3bps tighter…
Volatility was the name of the game earlier in the first-quarter as credit was swept up in the maelstrom affecting other asset classes, particularly US Treasuries and equities. The main credit indices spiked upwards and the Markit VolX Europe, which tracks realised volatility in… Login to Read More...
The big story in the global economy as 2015 comes to an end is undoubtedly the sharp fall in the oil price. Brent crude is hovering around $70 a barrel, the lowest for about five years…. Login to Read More...
Back in the summer of 2013, there were two main themes that investors feared could trigger a change in the credit cycle. The first was the US Federal Reserve scaling back its quantitative easing programme, which precipitated the so-called taper tantrum. The second was a possible “hard landing” for the Chinese economy…. Login to Read
We’ve commented in recent weeks on volatility, but it’s been mainly a macro phenomenon. Geopolitics, Ebola and uncertainty over monetary policy have all contributed to spread oscillations. But a little known Spanish renewable energy company provided the market with a welcome single-name credit story. Abengoa, an entrant to the Markit iTraxx Crossover index in March this…
Geopolitical risk was all the rage earlier this year, and played a major part in credit spreads widening in a number of short, sharp bursts. Monetary policy soon resumed its role as the main driver of sentiment, but there were indications this week that it may have to move aside. Ukraine saw its CDS spreads…
It is apparent to all market participants that volatility, so long dormant in this QE-saturated era, has returned in recent weeks. The credit asset class is no exception. The Markit VolX Europe, which measures realised volatility in the Markit iTraxx Europe index, reached its highest point since the “taper tantrum”… Login to Read More...