Saxo Group Videos

Why we're seeing the tightest ever spreads in corporate bonds

We're seeing some of the tightest spreads ever in the corporate bond market. David Sekara, Morningstar's Corporate Bond Strategist, explains how the corporate bond index has risen about five percent this year, most of that being generated by interest rates. He says he doesn't see any catalyst which could widen credit spreads. Interestingly, he also doesn't see anything that could tighten them further either.

Corporate bonds have been highly popular in recent years as investors looked for yield. There are those who suggest whether investing in these assets are worth the risk, given the diminishing returns. There's some concern that the market is due for a reversal.

02:26 minutes
Tags: 10 year, 10 year treasury yield, bonds, business, business news, content, corporate bond market, corporate bonds, corporate strategies, david sekara, equities, equity, finance, fixed income, fixed income bonds, interest rates, morning star, morningstar, news, owen thomas, rate spreads, reversal corporate bonds, saxo, saxo bank, saxo tv, saxobank, saxotv, spreads, tf, tightest, tradingfloor.com, treasuries, video, video news, where to find yield, yield, yield carry, yield spread

Switch to