Recent increases in both government yields and credit spreads have weakened the bond market in gener...
Recent increases in both government yields and credit spreads have weakened the bond market in general and corporate bonds in particular. Worries over the strength of Western economies and the possible upwards impact on inflation have driven sovereign yields higher while oversupply has hiked credit spreads in the corporate market. Rupert Pummell, credit analyst at M&G, says: "The sheer volume of supply in both Europe and the US, combined with reducing demand from retail investors due to the holiday season, has caused indigestion. "Companies saw yields beginning to rise and so there was a...
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