Pointing to value

This chart shows how credit spreads have been performing versus share prices, and might help investors spot relative-value opportunities

0504-chart-gif
The chart below supplied by JPMorgan, shows how credit’s various sectors have performed in the equity and credit market relative to the industrial universe since the start of the year.

The horizontal axis shows the excess spread over the ‘rock bottom’ spread relative to the average in the corporate bond market (excluding financials). The rock bottom spread is the minimum spread over Libor that investors require to be compensated for underlying default risk. Anything over and above this spread is

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to copy this content. Please contact info@risk.net to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Risk.net? View our subscription options

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here