Corporate Bond Analysis

Hovering at record levels... The occasional short pause notwithstanding, but the direction of travel is clear. Leading the charge will be equities and should keep breaking records. Rates are feeding into the narrative that yields could have topped out for the moment, and were overcooked previously. We've seen considerable retracement in US yields. Panic over. Credit squee [...]

Economic activity about to pop higher... Record equities amid a pandemic and hitherto depressed economic activity. We are set up for something special. Really, the S&P through 4,000 (and heading for 4,400) amid record equities almost everywhere, a check on rising bond yields (and no longer fear if they rise), V-shaped growth around the corner leaves us looking forward to [...]

Ain't no stopping us now... Relief, and in a sense good riddance. That was some volatile first quarter. Funny we're thinking that, after all, global stocks in some cases have added almost 10% in the period and set many a closing record highs along the way. Record issuance in US high yield, a blustering pace in the issuance in European HY and a not too shabby IG primary marke [...]

Volatile, but seeing it through safely... The month's penultimate session dished up a mixed bag but we are going to close up the month with most risk markets recording solid returns for the month and first quarter. The latest event risk curveball from Archegos seems to have been managed with barely a ruction in markets, aside from an expected (short-lived) wobble in bank sto [...]