MNI EU Credit Weekly: Summer Made Whole

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Executive Summary: 

• Cash spreads tightened marginally. The big news of the week came late on Friday, with Stora Enso exercising make-whole calls due to a likely covenant breach.
• European macro was quiet, mainly taking cues from the US where dovish data and a lack of conflict escalation helped ease Fed hike expectations slightly.
• Fund inflows were firm in IG credit and DM equities.  

• EUR IG supply rose to €2.2bn with three financials issuers in the market. Bloomberg’s primary survey implies a pickup in supply expectations for next week.