Art DeGaetano, CIO and founder of Bramshill Investments, discusses how trading desks should direct their attention this week as markets are pricing in further interest hikes from the US and European central banks. DeGaetano also unpacks his less conventional take on regional bank risk to commercial real estate; he talks about where to find overlooked opportunities and his view of the European credit markets.
North America
- Equities volumes are still low and spreads are wide for the year to date. US Investment-grade volumes rebound and spreads remain tight.
- In primary equities: We have several IPOs in Healthcare, Tech, and Materials on the New York Stock Exchange and Nasdaq.
- Data: Fed Rate Decision, July 26. US GDP, July 27. Earnings e.g. Microsoft, Meta, and Amazon.
- US axe data, which is within normal ranges, indicates a higher proportion of buying versus selling in credit.
Europe and the UK
- Equities volumes are low but spreads are tight for 2023. EU Investment-grade volumes fell week on week but liquidity has stabilized.
- In primary equities: We have several IPOs in Healthcare and Tech on the London Stock Exchange.
- Data: ECB’s rate decision July 27. Earnings e.g. UBS, Barclays, and Ryanair.
- EU axe data, which is within normal ranges, suggests a higher proportion of EU dealer asks versus bids in credit.
- GBP axe data, within normal ranges, suggests much higher net buying Vs selling of credit.
24.07.2023
