Tag Archives: OAS

Jun 19, 2020

Like the Virus, Credit Spreads Could Be at Risk of a Possible Second Wave

Ever since the Fed released its tsunami of credit, credit markets have rallied the most since the depth of the Global Financial Crisis. Continued central bank actions have driven the already existing trend toward demand for higher-yielding assets, helping companies issue debt with fewer lender safeguards and covenants. With the Fed willing to support the…

READ

Mar 30, 2020

Distressed in Distressing Times

Jeff Gundlach has been recently quoted as asking, “the Fed can buy up corporate bond ETFs and thereby prop up prices of corporate bonds, but what happens when there are defaults and the artificial Fed price is replaced by the recovery value?” We have already seen how the S&P U.S. Corporate Investment Grade Corporate Bond…

READ

May 16, 2016

Asian Fixed Income: A Quest for High-Quality Chinese Corporate Bonds

In a previous piece, we highlighted the emerging credit risk in Chinese corporates. Nevertheless, a recent survey reinforced the belief in the long-term future of China’s onshore bond market and pointed to an expected increase in exposure to Chinese bonds.[1]  As China’s bond market continues to grow, it may be important for market participants to…

READ

May 8, 2016

Asian Fixed Income: Chinese Corporates’ Spread Widened With Headline Risk

According to the S&P China Corporate Bond Index, the market value of Chinese corporate bonds was approximately CNY 26.4 trillion and represented 36% of the overall China bond market as of May 5, 2016.  It is a robust expansion compared with the mere 6.7% exposure in 2007 (see Exhibit 1). The yield-to-maturity of the S&P…

READ

Jul 28, 2014

Will the S&P/Case-Shiller Reverse The Trend Or Are Spreads The True Indicator?

Today’s Pending Home Sales for June month-over-month came in lower than the expected 0.5% at a -1.1%.  The prior May number was a 6.1% later revised to a 6.0%.  Tomorrow the S&P/Case-Shiller 20-City Composite Home Price Index is due for release at 9am. Heading into the release, the spread of the S&P/ISDA CDS U.S. Homebuilders…

READ


Sign up to receive Indexology® Blog email updates