Trader TV: This Week – Credit Risks and Post-Fed Hike

Published on 27 March 2023

A recap of events and an outlook of trading activity and liquidity issues for the week ahead.

North America

  • Credit Suisse collapse, Deutsche Bank fears saw poor liquidity. Volumes high on US exchanges
  •  In bonds, bid-ask spreads are wider compared to Feb 
  •  Primary equities: several IPOs expected in Tech and Mining

EMEA

  • Terrible liquidity in equities; spreads at 12.1bps. Deutsche Bank sell-off on lit venues.
  • Fluctuating volumes across bonds this month but the cost of liquidity levelled out 
  • Primary equities: IPOs expected in tech and Industrial on LSEG and Deutsche Boerse

APAC

  • Poor liquidity due to knock-on effects of Credit Suisse collapse and banking crisis
  • Unemployment data from Japan, Mar 30; manufacturing data from China, Mar 31
  • Primary equities: Lots of IPOs in tech and financials on the Japan Exchange Group