JPMorgan and Voya See Risks Lurking Amid Credit Euphoria
- Investment-grade spreads tighten to lowest level since 1998
- CreditSights downgrades US high-grade and junk to underweight
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Bonds from America’s most creditworthy companies have rallied to levels unseen in a quarter-century in the wake of Donald Trump’s political comeback. Now, some market watchers say the euphoria is concealing trouble ahead.
Spreads on US investment-grade bonds plunged to the lowest level since 1998 in the days following the US presidential election. In junk-bond land, the same measure of risk is at the lowest since 2007. And money is being poured into fixed-income assets.