While volatility remains the name of the game, the developments in March and general risk-off sentiments should provide some conviction for investors as to the way forward.
At OCBC Credit Research, we have observed a general pensiveness in credit markets year-to-date as persistent inflation prints and high inflation concerns fed through to issuance trends. Overall issuance volumes are down year-on-year while issuance trends have turned increasingly selective.
This highlights a progressive tightening in liquidity that threatened to boil over in March. Several high-profile bank failures culminated in UBS’s acquisition of Credit Suisse and volatile sentiments surrounding Deutsche Bank.
