MNI Credit Weekly: Fault Lines

Download full report here: 25.02.28 MNI Credit Weekly.pdf

Executive Summary: 

• Spreads widened an average 2.6bp in a reversal of last week’s strength. Real Estate was the only sector to tighten as fundamentals continue to improve. Autos underperformed under the tariff spotlight, but downbeat guidance was also a factor.
• The macro landscape continues to shift quickly, with lower rates this week on tariff sentiment. Fears are growing for the US economy while US equity valuations are increasingly questioned.
• Fund flows remained firm for IG across both regions while HY inflows were still more mute locally. US equities set a record inflow for this year.
• Supply stepped down slightly to EUR16bn this week, following a heavy issuance the week prior. Our average NIC turned positive for the first time since the first week of year, albeit marginally. Slightly lower volume is expected next week.