No End in Sight to Credit Market Roller Coaster
- UBS reckons selloffs and rallies made worse by herd mentality
- Defaults and company earnings no longer rule corporate bonds
Photographer: Patrick T. Fallon/Bloomberg
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For investors trying to make sense of recent extreme moves in the global credit market, bad news: The roller coaster may go on.
The long-feared liquidity menace is well and truly here, and it’s overshadowing more prosaic factors like low default rates and corporate earnings when turbulence in the $13 trillion market erupts, according to new research from UBS Group AG.