MNI EU Credit Weekly: In Tooth and Claw

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Executive Summary: In Tooth and Claw

• Spreads finished the week 2.3 bps tighter. We have seen considerable single-name volatility in equities
  after results. Weak performance was punished, though on balance more names have rallied than
  declined. Higher Beta Autos helped Consumers to outperform.
• Macro started the week on a positive note on the US/China rare-earths dispute. The FOMC on Wednesday
  reduced expectations of further rate cuts this year. SP500 is up 1% on the week currently, Stoxx 600 down
  0.6%.
• Fund flows increased in USD IG & HY while moderating in EUR IG. DM equities continued to see firm
  inflows.
• Supply was slightly higher but did not impact book cover or NICs with the latter around 0. Expectations
  are for a continued pick-up in volume next week.