Markit Recap – 6/6/2016

Tumbling volatility over the past months has seen US and European corporate credit risk converge, despite credit investors bracing themselves for diverging monetary policies.

In a speech yesterday, Fed chair Janet Yellen remained positive about an interest rate hike in the coming months, while tomorrow marks the start of the ECB’s corporate bond buying programme. The positive risk sentiment in both regions has seen corporate credit risk fall since February’s highs and credit index volatility