SSA bond market nears ultimate spread inversion as Trump bill passes

Send us Fan Mail◆ SSA yields bump up against US government curve with deficit set to spiral ◆ Waning CEEMEA ESG bond issuance ◆ Leaner, meaner SLL marketThe SSA bond market has enjoyed its fair share of eye-catching relative value inversions of late. Last year, the likes of Portugal and Spain began trading tighter than France in the European government bond market, for example. But after US president Donald Trump got his budget voted through on Thursday, it could be about to witness the mother of all RV upsets — bonds trading though US Treasuries for the first time ever.This week we look at the arguments for and against why this should happen and think about when it might occur.We also looked at some slowing areas of ESG capital markets. ESG-labelled bond issuance is falling in the CEEMEA bond market despite some recent high profile deals. We examine the theories behind why this is happening.Meanwhile, he sustainability-linked loan market is a shadow of its former self. We find out why and argue that this might be a good thing, showing a market gaining in sophistication.