Overall credit markets remained volatile last week as negotiations between Greece and its creditors turned south, which subsequently saw IMF pull out of negotiations. Both Itraxx main and crossover widened as a result adding about 5bp and 17bp respectively. It seems unlikely that a solution with Greece will be reached next week, hence we expect market jitters to continue for now, said Danske Bank
As a result of the market volatility some issuers probably chose to postpone printing, which was reflected in a very dull primary market adding a mere bn in corporate EUR issuance divided between two entities. We expect this to be a low point as more issuers will most likely try to get their prints done before the summer lull starts in a few weeks, adds Danske Bank
Secondary market liquidity remains poor with few buyers wanting to dip their toes in the water despite juicier spreads.
