Credit

The risk concentration index (RCI) for a diversified portfolio had been on a downtrend since the start of 2014. The latest risk aversion spell has brought this to an end. This index, which measures the diversity of risk sources, peaked when markets were mainly guided by the perception of the Chinese risk and by the re-emergence of a systematic risk.

The Eurozone offers better valuations for high yield bonds than any other region in the world, according to new research by NN Investment Partners (NN IP). The research, conducted amongst NN IP’s panel of institutional investment managers, showed 27% of respondents rated Eurozone valuations as strong or very strong while the US was cited by 22%, the UK and Japan by 18% each and Asia ex-Japan by 16%.

Scope Ratings noted that France is one of the wealthiest economies in the world, displaying a highly diversified economic structure, adding that it has weathered the financial and sovereign crisis reasonably well.

The European Investment Bank (EIB) and World Bank (WB) today signed an agreement under EU guarantee that aims to facilitate the purchase of gas by Ukraine’s national gas company, NJSC Naftogaz.

According to Bank of America Merrill Lynch, overall credit longs drop sharply again. Now only 9% overweight IG. Credit technicals thus better in October. Investor cash levels surge, but outflow concerns may partly explain this and only 31% of IG and 25% of HY investors think an extension of ECB QE will drive asset prices up.