The news wires are full of headlines around Trump, trade wars and Brexit. A mercantilist USA and a UK government clinging on by its fingertips are not conducive to positive market sentiment. Yet spreads appear unaffected by the political chaos; spreads have tightened, rather than widened. The Markit iTraxx Europe is trading at 65bps, a 10bps rally over July. UK sovereign CDS – an infrequently traded contract – is quoted at 23bps, 8 bps wider from its February level but hardly indicating distress.