With eyes aimed at the Chinese stock market, the first week of the year was marked by heavy risk-off sentiment in both equities and credits. The Hong-Kong stock exchange dived as much as 7% during the week followed by US and European indices which showed losses of around 6% (Dow Jones and DAX).
According to most sources, the sell-off was primarily driven by renewed growth fears as well as a further steep drop in the oil price. The end of the week saw some relief in the form of a better-than anticipated US non-farm payrolls report.
During the week the Itraxx Main widened 7bps closing at 85bps, while Itraxx Crossover widened 35bps and closed at 350bps.
Issuance during the first week of the year has primarily been within the IG space with names such as BNP Paribas (PA:BNPP), Rabobank and Daimler coming to the EUR market. In the Nordic space we saw issuance by Norwegian banks as well as Swedish investment company Industrivärden.
On January 11th, We released our Credit Outlook for 2016 . The publication is a joint-effort by the Danske DCM credit research team and contains an overall view of the market as well as recommendations on the individual sectors covered by our analysts.
To read the entire report Please click on the pdf File Below