Many Marvels: The Year In Corporate Credit
One the many marvels of 2020 was the US corporate bond market, where borrowers were able to access cheap money in record amounts despite (or because of, depending on how you want to conceptualize things) the worst economic downturn in a century. When the lockdowns began in March, credit markets convulsed. Spreads ballooned wider, CDX exhibited multi-standard deviation moves, outflows accelerated, and popular ETFs looked to be on the brink of "breaking," as big discounts to NAV suggested the und
2 thoughts on “Many Marvels: The Year In Corporate Credit”
My crystal ball says that courts will not enforce evictions (an extremely difficult process , even pre-covid) and banks will significantly slow down commercial real estate ( office, retail and multifamily) lending. Private equity will step in and those who could not/did not pay rent will still be able to borrow because non-payment will be blamed on “covid”.
If one thinks credit spreds are too tight- g-d help the stock markets