Global Corporate Bond Drought Helps Solve Low-Yield Puzzle
- Modest net corporate supply in U.S, Europe, emerging markets
- Relentless inflows plus positive technical outlook cap spreads
Gundlach Issues Warning to Bond Bulls
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It’s the debt market’s dirty little secret: the supply of bond issues launched by companies across Europe, U.S. and emerging markets has been decidedly modest this year, all things considered.
A jump in maturing debt, coupon payments and investor inflows are all helping the market soak up new obligations, and spurring credit spreads toward fresh post-crisis lows late in the global credit cycle.