Poor yields fail to dampen enthusiasm

Fund manager's comment

So who knew three months ago what a correlation trade was? The number of negative surprises impactin...

So who knew three months ago what a correlation trade was? The number of negative surprises impacting the credit markets is growing, and it is increasingly looking as though we have seen the best returns from the market for this credit cycle. Thinking back to March, to paraphrase one broker's timely research, it really was as good as it gets for the corporate bond markets. Default rates were falling and we were still looking back at a strong corporate bond rally. There is nothing like an established trend to make you feel comfortable about an asset class. Furthermore, economic growth rem...