T. Rowe Price: Still far too early to boost credit risk exposure

Conditions don't support rally

If we rewind to the beginning of the year, credit spreads were incredibly tight by historical standards, while growth was shaky and central banks were about to start tightening monetary policy to tackle inflation.

Noting these factors, we saw a real prospect of spread widening - which led us to cut our exposure to credit risk in our international and global multi‑sector bond portfolios Spreads have since widened over the past four months, and corporate debt is now trading more cheaply than it was in January. In ordinary times, this might be regarded as a signal to add credit back to the portfolio. But we are not living through ordinary times. Pictet's Mawby: Spike in bond market volatility 'isn't going away' Despite cheaper valuations, now is not a good time to add credit back to our por...