Has credit reached a tipping point?

Talking point

reid-pg16-jpg

Jim Reid, Head of fundamental credit strategy, Deutsche Bank, London

The problem for credit investors in deciphering recent moves is that their origins are far removed from credit fundamentals. Company fundamentals will not be the main driver of spreads until the economic/default cycle turns and the need and ability to borrow at the right price are important again. The default rate remains close to decade lows but it's a lagging indicator and high-yield spreads are probably tighter than 10 years

To continue reading...

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 indvidual account here: