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$ counterparts over the past month, in line with contrasted inflows in credit funds between € and $ markets Indeed, US$ HY funds posted net outflows of $2.6bn over the last 2 weeks, while there were less than €300mn net outflows in €HY funds over the same period. The same could be said of IG funds: $1.4bn net outflows for US$ ones, almost €1.9bn for € ones. - on the senior side, Corp. Non-financials outperformed financials over the past month by around 2 bp. Outperformance of Real Estate (-9bp) , Energy (-8bp) and Basic Resources (-7bp) over the past month . - Despite the renewed widening in the 10Y OAT-Bund spread to more than 80bp, the move has so far not impacted the credit market, with French Corporate and Banks performing in line with their European counterparts.