Contrasted inflows and performance between € and US$ credit funds over the last month
- Compression continued for High Beta credits … Over the last week, US$ HY, € HY and AT1s and Corp Hybrids have outperformed the credit market overall, with some spread tightening of 3 to 5 bp vs swaps Nevertheless, over the past month, there was a sharp contrast in terms of performance, with AT1 spreads tightening by 44 bp vs swap, followed by -30b p for € HY spreads and -21bp for Corp. Hybrids. Meanwhile, US$ HY suffered a 13bp widening , reflecting the discrepancy between inflows in US $ and € credit funds - … but € High Beta credits have been largely outperforming their US$ count...