Spreads in the investment-grade market started to come under some pressure in mid-March after an extended period of continuous tightening. Are investors rediscovering the concept of credit risk?
Not entirely. We still very much see investors in risk mode, or at least not in risk-aversion mode. Market participants have clearly been unsettled by the plethora of poor news of late—surging LBO activity, spiking energy prices, a rash in delayed financial filings and General Motors’ forec