Corporate spreads tightening this year

Fund manager's comment

Fundamental economic support for corporate bonds together with almost extraordinary demand from inve...

Fundamental economic support for corporate bonds together with almost extraordinary demand from investors has taken corporate spreads tighter this year. Another strong supporting factor has been the continued absence of supply, not just in sterling but also in euro-denominated bonds. However, overall funding levels should continue to look attractive to companies and increase market optimism for future supply levels. But it is possible that corporate finance directors will not have a need to borrow money. In the short term the indiscriminate buying that was a key factor towards the end of...