Credit spreads
Spreads remain tight with only a modest widening in the year to date. The shift has been a slow grind, not a shock, and equities show the same pace. Markets appear calm, with gloomier outlooks given little weight in prices.
Topic
Credit
A collection of 3 issues
Market movements
We are a week into a major conflict in the Middle East and an associated near-sudden stop in oil and gas tanker traffic through the Strait of Hormuz. This week’s note reviews the impact so far on capital markets and commodity markets and sets out how, as an asset allocator, I am responding.
High yield bonds
High-yield bonds may be my favourite asset class - both for the return potential they offer and for the information their price action conveys. They have been a staple of my portfolio management toolkit for more than 25 years.