‘Carry Is King’ in Credit Market Trapped in Summer Stalemate
- Spread volatility seen low ahead of key central bank meetings
- Spreads caught between expensive valuations and policy support
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Global credit markets have gotten so subdued that investors are focusing on a more humdrum source of profits: coupons.
JPMorgan Chase & Co. and BNP Paribas SA have described it in the same way, with analysts at both banks adopting the refrain: “Carry is king,” a reference to the return from simply holding a bond.