MNI Credit Weekly: Go Big or Go Home

Download Full Report Here 25.02.21 MNI Credit Weekly.pdf

Executive Summary: 

• Spreads were again tighter on average by 2.2bps. Consumer Discretionary posted a strong move despite weak Chinese demand impacting many names. Spread compression was a theme with wider names doing well.
• Macro had a more challenging week. Equities were softer but not dramatically so. Rates whipsawed during the weak with soft French PMIs, hawkish comments from Prof. Schnabel and NATO pressure on government spending all providing volatility away from the obvious US source.
• Fund flows moderated for $IG but was offset with firm $HY inflows. Inflows into €IG firmed to above $2b. European equities set records for a second straight week with $4b+ inflow – highest since February 2022.
• Supply came to EUR 18.9bn this week across 24 lines from 16 issuers including large deals from J&J, Carlsberg and Enel; we calculate a 0bp average MNI NIC when excluding the Athene deal (an outlier at 17bp).