MNI EU Credit Weekly: Deal Inferno

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Executive Summary: 

• Cash spreads were marginally weaker for a second consecutive week. Idiosyncratic events are rising, with significant M&A news on at least nine issuers.
• In macro, yields fell in tandem with lower oil prices as disruption in the Middle East continued to ease. US PCE data was also soft.
• Fund flows decelerated for credit while equity outflows continued, with the US also seeing withdrawals.
• EUR IG supply slowed to under €12bn. Books were weaker on an aggregate basis with NICs marginally wider, mostly driven by NTT’s multi-trance deal.