MNI Credit Weekly: Festive Frenzy

Executive Summary: Festive Frenzy

• With our final Credit Weekly of the year, we would like to thank our clients for your support and wish you all a wonderful festive break.
• The Santa Rally came early with spreads almost 6bp tighter on the week. Beta compression was a strong theme, with the year-long narrative of yield buyers in credit supporting spreads.
• Today’s employment data left a 25bp December cut all but locked in for the US while France dominated European headlines. Barnier's ouster this week leaves uncertainty on the make-up and policies of a future government, but OATs have already come in meaningful from the wides.
• Fund flows were firm in EUR IG while HY saw inflows return. Trends in USD remained little changed.
• Primary saw a small uptick from a very low number last week.

Full piece here: 24.12.06 MNI Credit Weekly.pdf