The Great Credit Dilemma: When to Quit After Historic Rally?
- Corporate bonds too expensive to own, but too valuable to sell
- Schroder, Aberdeen fund managers plot exit strategies
OppenheimerFunds' Memani Says Bond Bull Market Isn't Over
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After mopping up bumper returns from central bank stimulus for the best part of a decade, credit investors in 2018 look cornered.
On the one hand, spreads have ground so low that further upside is looking more and more limited as central banks exit bond-buying programs. On the other hand, it’s hard to justify shorting the market at a time when global growth is picking up and there’s no sign of a rise in defaults.