Tide may be turning in favour of credit

By Anna Lees-Jones, manager of the M&G Corporate Bond Fund Credit spreads have held up well amid the recent turmoil in equities. We see this as growing evidence of a decoupling of credit from equities ' with credit outperforming. Increasingly more market participants seem to be remarking on this emerging trend and, although it may be partly because of strong technicals in the credit market, many of the recent 'winners' have been lower-quality, more distressed names such as telecoms operators. The current environment of modest growth provides the perfect foundation for credi...