Investment grade (IG) bond credit spreads have further tightened and have reached almost pre-Covid levels. The upside of IG bonds is limited taking into account their embedded “duration” feature. In comparison, spread levels in the high-yield (HY) market are still wider and have more room to tighten. High yield bonds are typically more cyclical in nature and have more upside should the vaccine roll-outs be successful and the US and European economy normalize further.
- Blog, Newsflash
Investment Grade credit tightened
- Covid-19, Credit Spread, Investment Grade Bonds
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