Credit Indices Are Trading Very Heavy

IG is near the wides of the day – in spite of stocks being up (when I started this). HY17 is also weak. HYG had been holding in, but too many people trade that off the equity desk to be plugged in. The number of runs on recent new issues dropped telling me the underwriter took their street bid and went home and some flippers are a bit nervous they are becoming investors.

With weakness in European fins and IG17, expect some people to lean on it.