Credit Rarely Moves First Without a Reason

Say what?

Credit protection continues moving higher...

Source: LSEG Workspace

 

Haven't seen this in a while

Credit and bond protection have moved in tandem for a long time (resetting lower), but the latest move higher in credit protection has left bond volatility behind. This divergence is new.

Source: LSEG Workspace

 

Credit and equity protection

CDX IG and VIX are now moving higher in tandem. Cross-asset risk pricing is starting to re-align.

Source: LSEG Workspace

 

The private equity connection

Credit protection is moving closely with the PSP (inverted). Looks like private equity "knows" something?

Credit rarely moves first without a reason.

Source: LSEG Workspace