We have interest rates about to rise, and little if any positive impact left from further
tightening of credit spreads.
This led to a substantial
tightening of credit spreads, which made Russian bonds look expensive compared to their peers in other emerging markets.
Again, the result might be at most a small rise in yields on riskless assets matched by an equivalent
tightening of credit spreads.
Not exact matches
Credit spreads have tightened globally, and U.S. credit spreads are at the narrow end of their 17 - year range against government bonds — even after a recent wid
Credit spreads have
tightened globally, and U.S.
credit spreads are at the narrow end of their 17 - year range against government bonds — even after a recent wid
credit spreads are at the narrow end
of their 17 - year range against government bonds — even after a recent widening.
Elevated valuations keep us cautious in fixed income, as
tightening credit spreads offer little cushion against rising rates in many parts
of the market.
The problem comes because
of the scarcity
of assets, one reason why high - yield
credit spreads have been
tightening even as short term funding rates have risen.
So as the safe haven appeal
of government debt reduces while the overall quality
of corporate
credit improves, it's logical for high - yield
credit spreads to
tighten.
So in a boom,
credit spreads [the difference between the yields
of corporate bonds and Treasury bonds]
tighten quickly,
tighten slowly, and then stop
tightening, even though things seem to be going great.
Additionally, we tend to take a cautious stance on
credit risk in this mature stage
of the business cycle given limited
spread -
tightening potential.
Credit spreads have tightened globally, and U.S. credit spreads are at the narrow end of their 17 - year range against government bonds — even after a recent wid
Credit spreads have
tightened globally, and U.S.
credit spreads are at the narrow end of their 17 - year range against government bonds — even after a recent wid
credit spreads are at the narrow end
of their 17 - year range against government bonds — even after a recent widening.
Credit spreads largely
tightened, and the dollar fell on the FOMC announcement, before rallying back to flat the rest
of the week.
Since the peak levels seen on Feb. 11, 2016, U.S. dollar
credit spreads have
tightened dramatically, with the high yield indices registering returns
of over 10 % since.
Underperformance
of the HYLV index from carry and
spreads in a
spread -
tightening environment is not surprising, given its lower yield profile and more defensive positioning
of credit risk than the benchmark.
Since the financial crisis, investment grade corporate bond indexes have reached record highs, 1 and
credit spreads have
tightened significantly,» said Michael L. Sapir, Chairman and CEO
of ProShare Advisors LLC, ProShares» investment advisor.