IG spreads are barely changed. New issues are digesting and secondaries are still tighter than last quarter. Stability is the absence of a dislocation, not a green light.
The dealer markup remains. A tighter secondary spread is not the listed $0 equity ticket. Corporates are priced from inventory, with a markdown or a markup.
The note describes the state of the spread. It does not name an issuer to buy.
What the desk is watching
- IG spreads barely changed
- New issues are digesting
- Stability is not a green light