Unpredictable markets as buyers favour hard core
Core European FIG borrowers are increasingly being divided into two camps — the “soft core” and the “hard core”, said bankers on Wednesday. With secondary spreads widening even for banks from traditionally core jurisdictions such as France, buyers are picking up clips from strong names such as Svenska Handelsbanken and Nordea, while peripheral institutions suffer.
The iTraxx senior financials index was 332bp on Wednesday, 13bp wider on Tuesdays close. Secondary flows remained low, making investors unwilling to put on positions in the last few weeks of the year.
People are having increasing difficulties putting on risk before the year end, its difficult to move
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