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Bond Strategy Running Wide and Tight

Posted on June 02, 2008

I just read a brief research piece from a dealer on the prospects for corporate bond spreads. I do not know if the author intended to do so but in the short piece he made the case for wider spreads as well as tighter spreads. The case for wider spreads hinges on the belief that the market is still subject to tape bombs in the financial sector which would tend to move spreads wider. In addition, those stories would likely disturb the fragile equanimity of the stock market and corporate spreads have moved, in large part, with the movements in the equity markets....

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corporate bond , markets