UBS Stargazing Signals Back-to-Back Bond Losses: Credit Markets
This article is for subscribers only.
Wall Street is starting to signal that 2014 will look a lot like 2013 for U.S. corporate bond investors, setting the stage for the first back-to-back annual losses for investment-grade securities on record.
The debt, on pace to lose 1.9 percent this year as investors reject record low yields in favor of stocks, will drop an additional 0.9 percent in 2014, UBS AG analysts led by Matthew Mish said this week. That followed Citigroup Inc.’s forecast last month for a 1.1 percent decline through next year.