The overall positive tone in the credit markets returned last week with the iTraxx Main tightening some 5bp to close at 73bp, while the iTraxx Crossover tightened some 13bp to close at 317bp. The tightening came on the back of decent numbers from the large US banks, better than expected inflation and jobless claims numbers from the US. This was in addition to good macro indicators from China, including a GDP reading in line with expectations.
Risks are building however as fresh polls regarding Brexit indicate a tie between the yes and no camps, with over 17% still undecided. This follows a more gloomy outlook from the IMF for global growth of only 3.2% this year (down 0.2pp).
On top of this, the outcome of Sunday's Doha oil summit, where the larger oil-producing countries failed to reach an agreement on production cuts, caused oil and subsequently most other commodities to dip. This is likely to refuel worries about the financial well-being of commodity-related companies.
We saw limited activity in the Nordic new issue market in the region, with Norwegian Eika Boligkredit printing a EUR500m covered bond issue and a few domestic currency issues from Jernhusen, SBAB and Rikshem.
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