Although Fed tightening could dull investors’ appetite for risk, its onset has not tended to push up the spreads of US corporate bonds over Treasuries much in the past. We expect a similar outcome this time around given the rude health of the US economy. Spreads have typically only surged when there has been a recession or major financial crisis, neither of which appear to be on the horizon.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.