Hitting rock bottom



In recent months, spreads on corporate bonds have become so tight that there has been speculation in the media of a bubble in the credit market. Indeed, The Economist recently produced an article warning that “in recent months…investors have been bidding up bond prices to levels that are in danger of becoming as dotty as share prices once reached.”

But unlike equities, bonds have a maximum value – presumably investors will not pay to lend money. Admittedly Berkshire Hathaway, an invest

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