Is it time to embrace spread products again?

Judging by the ease with which record issuance volumes of corporate bond are digested, particularly private investors seem to think on whether it is time to move back into fixed income risk assets. Clearly, corporate default rates will be heavy and recovery rates depressed but high yield markets alr...

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Bibliographic Details
Published inInvestment Week p. 41
Main Author Gasser, Ralph
Format Trade Publication Article
LanguageEnglish
Published London Incisive Media Limited 27.04.2009
Subjects
Fixed incomes
Interest rates
Investment policy
Spread
United Kingdom > UK
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Summary:Judging by the ease with which record issuance volumes of corporate bond are digested, particularly private investors seem to think on whether it is time to move back into fixed income risk assets. Clearly, corporate default rates will be heavy and recovery rates depressed but high yield markets already discount for a worse recession than the Great Depression. If managed actively, this could well be one of the very best performing fixed income strategies over the next two to three years.