Credit Markets Look Cheap But Structurally Challenged: Goldman

Instability in global credit markets is the subject of Goldman Sachs’ March 2 Top of Mind, global macro research report. And one of the markets Goldman looks at in the research note is the US corporate credit market, which the bank believes looks cheap, but structurally challenged at present. Goldman’s credit analysts, Lotfi Karoui and Bridget Bartlett believe that US corporate bonds are pricing in much more adverse scenarios than expected for both the economy and default rates. With this being the case, if Goldman’s predictions prove right and the economy is healthier than the credit markets suggest, spreads are…