Credit Outlook: We Favour High Yield
- By John Tierney
- 4 min read
Summary
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- Investment grade and high yield corporate bond spreads are trading in a narrow range, in line with equity volatility.
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- We see little risk of a systemic widening until the default rate starts rising.
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- As long as the risk of recession remains low, the default rate will remain near cyclical lows, and there is little risk of systemic widening.
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