Credit’s Strong Run Stumbles for First Time This Year
- ‘Valuations aren’t attractive,’ says Allspring’s Noah Wise
- But Goldman expects excess returns through end of year
A pedestrian enters a building on Wall Street, near the New York Stock Exchange.
Photographer: Alex Kent/BloombergThis article is for subscribers only.
Global corporate bonds are on track for their worst month since late last year by one measure, reigniting the debate about the relative value of credit versus other fixed-income classes.
Spreads have widened by about 10 basis points so far in June, from around the lowest levels in three years, a Bloomberg index shows. Meanwhile, yield premiums on those notes as well as US high-grade securities are rising from levels in May that were only seen for less than 1% of the period since the 2008 global financial crisis, the data show.