Watch out tariffs’ negotiations… before the upcoming earning season
With geopolitical concerns easing in the Middle East while tariff news were positive with the signing of a US-China deal at the end of last week, credits performed nicely last week . High Betas were the main beneficiaries of that lower risk aversion context (with VIX dropping by 4 points last week to 16%), led by AT1s (-11bp) and US HY (-10bp). The latter was also supported by record inflows since November 2023 according to Lipper-FMI ($3.5bn). € Corporate hybrids also performed nicely with an average 6bp tightening vs swap. On the other hand, it’s interesting to see that Bank T2s had more dif...