Thought I would do a snapshot to see if there is visible credit or sovereign contagion.
Limited reaction in credit markets with no panic selling.
Banks and leaders stepping up with supportive calls on NO GREXIT against enemy camp calling for Grexit eg. former PIMCO Mohd El Erian seeing 85% odds.
Key Headlines
*GUINDOS SAYS SIGNIFICANT MAJORITY OF GREEKS WANT TO KEEP EURO
IMF & credit agencies say Greece not meeting Jun30 pmt is considered “debt in arrears” not default !
*CHINA’S CSRC SAID TO CONSIDER SUSPENDING IPOS AMID MARKET SLUMP
Rumours
1. CIRC calls insurers to keep at least 70% of equity position.
2. Margin selling been suspended with regulators giving “window-guidance” on margin calls force selling telling brokers to stop the selling to protect the market.
Brokers assuring.
Translated : Opportunities Dressed Up As Misfortunes
CREDIT MARKET REACTION
Marginal correction in credit spreads for Invt Grade bonds, all wider by 5-15 bp.
HY credits also supported with prices down 0.5 to 1.5 cts.