As Morgan Stanley analysts turn tactically cautious on U.S. credit, they recommend that investors sell this rally or at least put hedges in place. Adam Richmond and team said in their March 30 research note titled “Corporate Credit Insights: Fade the Rally” that they believe the risk/reward is less attractive in HY than in IG or loans. Credit rally leaves risk assets in a “sweet spot” for now Richmond and colleagues argue that credit has rallied as modestly better economic data has alleviated recession concerns and at the same time, central banks have counteracted the growth scare from earlier this year with aggressive action…
Sell This Credit Rally: Morgan Stanley
Mani
Mani is a Senior Financial Consultant. He has worked in Senior Management role in large banking, financial and information technology organizations. He has provided solutions for major banking and securities firms across the globe in the area of retail, corporate and investment banking. He holds MBA (Finance) and Professional Management Accounting Qualifications. His hobbies are tracking global financial developments and watching sports