2014 US Credit Outlook - Living in a Lean World
Mark Howard, Colleen Watson, Ashish Jain - Credit
The Weekly Credit Pulse | 12 Dec 2013 16:47 | 1131 Kb
Summary
2014 US Credit Market Roadmap
US credit spreads are likely to grind tighter through much of 2014, but the path will not be linear or easy. Decent fundamentals and solid inflows are offset by rising interest rates, suppressed volatility, and skinny valuations. Total returns are expected to be modest in 2014 given our rates forecast, but excess returns are expected to be decidedly positive. We forecast 13bp of cash IG spread tightening and 58bp of HY tightening by year-end.
