Credit risk in August has spiked, and it is concerning institutional investors, a UBS report notes. As Corporate credit spreads have been materially widening of late, indicating a degree of concern, several correlation anchors, likewise, appear to be diverging. There are several factors driving the recent risk-off movements, as “headwinds abound.” While remaining “modestly cautious,” UBS analysts Stephen Caprio and Matthew Mish point to idiosyncratic opportunity and forecast positive market environment going forward with one meaningful caveat involving “geopolitical risk.” Recent widening of corporate credit spreads could be due to geopolitical risk and forced selling [dalio] There are signs of…
Corporate Credit Spreads Are Widening, But
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.