Credit spreads too tight… not so fast

Posted on April 30, 2021 by Florian Buschek

High yield spreads are historically tight again, so that surely must spell trouble.

Well, not so fast because the index composition has also changed. As a matter of fact, what is called “junk” is actually the highest quality it has ever been. on top of the backdrop of a cyclical upswing. From the Bloomberg Markets newsletter

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