Credit comment

Investment Grade spreads have been holding steady at +135 bp or so while High Yield has compressed a bit, around the +450 bp mark. As the rate decision seems to get pushed back later, the treasury curve has steepened quite a bit (10-30s 80 bp now — tights were +55 bp). Also, the dollar has suffered vs the Euro (1.09 now vs 1.04 tights) and other currencies. The Ruble meanwhile has quietly tightened to 50.4 vs dollar, from the wides (70) as the Ukraine drama has become common news. 

Meanwhile, corporate M&A is alive and strong: Charter buys Time Warner for $55 bb and the result is expected to stay Investment Grade on first glance! Obviously, CHTR and TWC are expected to dominate secondary trading activity today.

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