Uncertainty prevails: Attractive valuations exist but the risk of defaults is high

The first quarter was a rollercoaster for global credit markets with a severe, homogeneous sell-off, followed by a sharp, if more modest, central bank-induced recovery.

This has left many parts of the market attractively valued, even when considering the huge uncertainty around Covid-19 and its economic impact. Valuation concerns as investors clamour for short-term...