Are Spreads Pricing Fed, ECB Cuts for Perfection?: Credit Crunch

Credit markets have had a strong year, a few blips notwithstanding. After the ECB cut rates twice, the BOE once and with the Fed about to embark on a long cutting cycle, are credit spreads too tight and priced for perfection? Is the rally in yields justified on expected rate cuts until 1H25? In this episode of our Credit Crunch podcast, host Mahesh Bhimalingam, chief European credit strategist at Bloomberg Intelligence and Jamie Irvine, investment director at abdrn, discuss the state of credit across the US, UK, and Europe. They tackle relative value across credit in different currencies; junk and high grade; fund flows and supply; defaults and ratings; and fundamental views. They also address the sterling credit market, and the impact of elections across the US, UK and Europe.