Beware the return of fundamentals in the credit market, say managers in a market currently dominated by technical factors.
George Tintor, managing director at Palomar Capital Advisors, is excited about the current market. "In general, there is very little absolute value in fixed-income spread product today," he says.
"Risk premiums are at very low levels. Investors are not being rewarded for the potential systematic and idiosyncratic risk that exists and technical factors are overwhelming