Scandi High Yield Weekly - 12 May 2015

Published 05/13/2015, 01:47 AM
Updated 05/14/2017, 06:45 AM

On the back of increasing underlying interest rates, we saw a continued drift wider for spreads in the European high yield market. The 5Y iTraxx Crossover widened by some 4bp over the week. Volatility is back and markets seem fragile following the increased interest-rate volatility.

In very thin trading the Nordic HY cash market (measured by our Nordic HY index) ended the week with a minor spread tightening of 2bp - we assume this is solely due to illiquidity and technical reasons, since higher underlying interest rates, all else being equal, should command lower cash prices and at least unchanged credit spreads.

Positively we saw activity in the primary Nordic HY market during recent days, when Teekay, Aligera and Golar LNG came to the market and closed transactions.

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