Positive week for the market and the Eur High Yield segment posting close +15 bps.  Momentum eased this week after a strong start for risky assets. Spreads in credit markets are mostly unchanged with the exception of the US market where yield fell below 4% for the first time ever. Lower yield will encourage more companies to refinance their outstanding debt.

Distressed, energy, and CCC have lead the way so far in the US. European markets, despite a decent glut of supply HY segment, was pushed higher by favourable techinals.

News of last week was the Tesla’s Bitcoin announcement. Interesting to see the environmentally friendly Tesla, which, yes … is still part of the High Yield world despite the stock price, invested $1.5 billion in bitcoin the least sustainable crypto.

Meanwhile, the Pfizer-BioNTech vaccine has now been cleared for use across North America, Europe and the Middle East, and vaccination campaigns have begun in at least 76 countries. Meanwhile in Germany Angela Merkel extended the hard lockdown until the 7th of March.