This report highlights a divergence in the US IG credit market where median spreads are near record tights, yet issuer dispersion remains unusually wide. Investors are advised to account for this 'wide tail' as volatility remains historically low.
Key Takeaways
- 1.Investment Grade (IG) issuer spread dispersion remains elevated at 1.55x despite median spreads being near cyclical tights.
- 2.Volatility in IG bond spread moves is at a 5-year low, supporting the attractiveness of carry trades.
Table of Contents
- Daily supply snapshot
- Daily dealer inventories update
- Daily HG fund flows
- Daily foreign demand tracker
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Authors
Yuri SeligerSohyun Marie Lee
Securities
ORCLF
Themes
Carry Trade AttractivenessSpread Dispersion
Regions
North AmericaUnited States