When the primary market works, everything works

Edito A quiet start to the year is actually quite good from time to time. Almost all implied volatilities are at quarterly lows and the flood of bond issues are attracting large oversubscriptions, against a backdrop of all-time-highs in equity markets thanks to the (phase one) agreement between China and the United States and a good start to the US earnings season. Nevertheless, macroeconomic figures are barely giving substance to the optimism shown at the beginning of the year. And a symbolic victory over China will hopefully not shift the trade focus to European exports.