Credit market prepares for World Cup slowdown

As football aficionados await Friday’s FIFA World Cup opening ceremony with bated breath, credit market participants are preparing themselves for a slowdown in trading activity and reduced volatility during the five weeks of the tournament.

Credit volatility is normally higher in the summer months than during the rest of the year. But a recent study of the impact of major football events on the European credit markets since 1999 by credit strategists at Morgan Stanley in London shows that footba