Inflation is back on the agenda

Credit markets have started to pick-up in recent weeks. This has partly been driven by tender and e...

Credit markets have started to pick-up in recent weeks. This has partly been driven by tender and exchange offers from the banks, whereby Lloyds and Royal Bank of Scotland are exchanging UT2 and Tier 1 debt into senior debt. This, in turn, has led to a rise in prices of some distressed assets, in some cases by significant amounts. Indeed, the move has been particularly beneficial to other bank subordinated debt and some high yield areas of the market where spreads have also tightened. The past month has also seen an improvement in economic data, particularly out of the US. Many econom...