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Back to school, back to supply: corporate credit spreads at historic lows, what’s next?
Episode 99
Published 7 months, 2 weeks ago
Description
Corporate credit spreads are at historic lows – will September’s bond supply shake up the market?
Neil Sun, Portfolio Manager on the BlueBay U.S. Fixed Income team, analyzes the tightest corporate bond spreads in decades and highlights potential opportunities.
- Investment-grade corporate bond spreads are near 80 bps over Treasuries, driven by strong demand despite slim risk compensation.
- With $130-150bn in new corporate issuance expected, the market’s ability to absorb supply without widening spreads will be tested.
- Long-term conditions support a bullish credit stance, but near-term widening may create selective re-entry opportunities for investors.