The narrowing of credit spreads is a phenomenon that has been well documented. In a nutshell, as European corporates delevered, rating migration became less negative and default rates dropped. Spreads tightened, and credit curves flattened.
Another issue has received less attention. The rally has resulted in a lack of discrimination between credits, which Willem Sels, head of credit strategy at Dresdner Kleinwort Wasserstein views as an anomaly. The chart shows the current frequency distribu
The week on Risk.net, July 7-13, 2018Receive this by email