2023-05-16 00:25:00 ET
Summary
- Weakness in credit markets in the form of wider spreads and the primary market struggling begs the question of what is driving the recent weakness in credit markets.
- The answer to the question seems to be a combination of many smaller factors, including credit looking expensive, a shift from yield buyers to spread buyers, and limited issuance windows.
- We are still constructive on credit markets long term but we do feel a repricing in the short term is necessary as the dynamics of the market changes.
For further details see:
Small Factors Combine To Pressure Credit