Global Economics

Pricing Corporate Bonds? Does the QE effect wear off? Will Corporates have to be repriced? …

Pricing Corporate Bonds? Does the QE effect wear off? Will Corporates have to be repriced?

2 Responses

  • Ambrose_Bierce

    Dec 31, 2017

    Pricing Corporate Bonds? Does the QE effect wear off? Will Corporates have to be repriced? https://s3-us-west-2.amazonaws.com/maven-user-photos/mishtalk/economics/0ecovKym8U6vMOltcykylA/Ig5YcI7kiU-quySvCGXg-A

  • TFMKTS

    Jan 1, 2018

    Hy might weaken relative to IG but don’t see a catalyst for major widening.

  • Ambrose_Bierce

    Jan 8, 2018

    HYG has since rebounded nicely, which implies that higher interest rates are on a sustainable course, I assume that at some point rates will collapse and the HYG will collapse all things being equal the yield will increase relative to Treasuries. So its a valid indicator to me, and the size of corporate issuance is at extremes, and in a self inflating virtuous cycle? The shock of rate collapse cannot be overstated in this instance it might actually precede the economic collapse, not the other way around.

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