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Compensation for credit risk is poor

Following the sharp sell-off in Q4 2018, credit markets globally have performed strongly in 2019. Having seen a big dip, followed by a quick rebound, how are we now left?

Credit is the Canary

Following last week’s meeting of the US Federal Reserve (FED), markets have become increasingly concerned that the FED is making a policy mistake in continuing to increase interest rates.

The early movers are leaving the credit party

During the early stages of the reach for yield process, credit market exposure was the wise choice. Now that we’re closer to the end, it’s more questionable.

Investment Grade Credit Relative Value

Investment grade (IG) credit has been one of the worst performing asset classes so far this year, and its largest segment – USD IG credit – has been the worst hit.