372. Are credit spreads really expensive?

We sit down with Stephen Snowden, manager of the Artemis Corporate Bond fund, to unpack the state of the bond market. He explores key concepts such as credit spreads, duration, and the relationship between corporate and government bonds, while examining how inflation and fiscal pressures are shaping yields today. The conversation also touches on how shorter bond maturities and improving corporate balance sheets have changed the credit landscape. With thoughtful analysis and practical examples, this interview helps investors understand how to navigate a “tight spread” environment and where potential opportunities may still exist within corporate bonds.What’s covered in this episode: What a credit spread really means – and why it matters for bond investorsHow corporate bond yields compare to government giltsWhy today’s tight spreads might not be as expensive as they appearThe impact of shorter bond maturities on risk and returnsHow corporate and household balance sheets have strengthened since the financial crisisThe relationship between credit spreads and equity market valuationsHow fund managers manage duration – and what that means for interest rate riskWhy long-dated gilt yields have risen despite rate cutsHow global government debt levels are influencing bond marketsWhy real yields are now looking more attractive for long-term investorsWhat to expect from corporate bond returns over the next 12 monthsWhy fixed income remains a compelling alternative to cash in a cooling inflation environmentMore about this fund: The Artemis Corporate Bond fund invests in investment grade corporate bonds, with some ability to allocate across the wider fixed income market. Stephen takes a long-term strategic and thematic view, but will also take advantage of short-term opportunities when they present themselves. Stephen and the team combine strong analysis of both the wider macroeconomic picture, and close examination of the fundamentals of corporate bonds, to produce a portfolio designed to weather any economic climate.Learn more on fundcalibre.comPlease remember, we’ve been discussing individual companies to bring investing to life for you. It’s not a recommendation to buy or sell. The fund may or may not still hold these companies at the time of listening. Elite Ratings are based on FundCalibre’s research methodology and are the opinion of FundCalibre’s research team only.