Credit’s Strong Run Stumbles in First This Year: Credit Weekly

Global <-bsp-bb-link state="{"bbHref":"bbg://news/topics/CMW","_id":"00000190-43f3-d497-a7fb-efffc2960000","_type":"0000016b-944a-dc2b-ab6b-d57ba1cc0000"}">corporate bonds are on track for their worst month since late last year by one measure, reigniting the debate about the relative value of credit versus other fixed-income classes.

Spreads have widened by about 10 basis points so far in June, from around the lowest levels in three years, a Bloomberg <-rte-company state="{"_id":"00000190-43f3-d497-a7fb-efffc2970000","_type":"00000160-4b23-d8bd-adfd-4b3348fd0000"}">index shows. Meanwhile, yield premiums on those notes as well as US high-grade securities are rising from levels in May that were only seen for less than 1% of the period since the 2008 global financial crisis, the data show.

While heavy spread widening would make credit less ...