Corporate bonds had a difficult summer, but currently wide spreads present opportunity for patient i...
Corporate bonds had a difficult summer, but currently wide spreads present opportunity for patient investors. It will take time for profits to improve and leverage to decline but it appears to us that the corporate world is foregoing the financial strategies driven by greed in favour of strategies driven by financial fear. However, for corporate bonds to outperform in the next few months, the US economy will need to avoid a double-dip recession. Our house view is that a double dip in growth will be avoided, although the risk remains on the downside as far as economic growth is concern...
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