Credit comment

The tug of war continues between the Grecian representatives and their lenders with confusing headlines overall. The concern extended to Greece missing its June IMF payment. 

This week may provide more clarity with Greece expected to stay in the Euro with lender concessions. The drama has weighed on our market with stronger Treasuries and weaker credit spreads. Month-end Index rebalancing did usher in some buyers and durations extended in the last week. 

Oil continues to be a slippery story in credit; to put it in context, oil is approximately half of where it was last year and yet yields are almost the same! (testifying once more to yield grab by hungry cash in ETFs and quantitatively driven funds that reach for low-hanging fruit even if they may be grenades in disguise). Have a good week ahead!


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