Credit Institute: Corporate debt may price inside sovereigns

credit-institute
Geraud Charpin, BlueBay (l) and Tommy Leung, UBS

Corporate bond spreads may soon move inside government bonds amid growing fears over sovereign default risk, according to panellists at the inaugural Credit Institute meeting, held in London on March 23. The spectre of sovereign default has been a major talking point among investors this year, as European economies struggle with mounting fiscal deficits. Greece’s deficit caused it to be downgraded by the three major credit rating agencies at the end of 2009. Tommy Leung, head of Europea