The Credit Markets Have Stalled | WHAT REALLY HAPPENED


The Credit Markets Have Stalled

Credit markets often move before the equity markets, and this can offer helpful information about the near-term path of equity prices. In general, I like to see credit confirming what the equity markets seem to be saying. When credit stalls, like it is now, I take notice.

Investment grade spreads recovered about 30bps between January 3 and February 5, 2019. They have since widened out by about 2bps while the equity market is mostly flat.

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