Important information

This website is for Financial Intermediaries in Switzerland only.

 

If you are an Individual Investor click here, if you are an Institutional Investor click here. Should you be looking for information for another location, please click here.

 

By clicking, you acknowledge that you have fully understood and accepted the Legal and Regulatory Information.

Fixed Income

Investment Grade credit – Despite tight spreads, opportunities remain

April 5, 2024

The prospect the US Federal Reserve will soon pivot toward easing policy has seen credit markets rally strongly over recent months. As a result, credit spreads for investment grade corporate bonds have continued to tighten from the peaks reached after central banks commenced their hiking cycles.

 

Spreads for the global investment grade credit indices are now near historically tight levels. Importantly, this does not mean that there are no longer opportunities to be found in IG credit. Indeed, this remains a very favourable environment for the asset class both in terms of carry and the potential duration tailwind from falling rates.

 

This note outlines 5 reasons why we think investment grade credit remains an attractive area of the bond market including: tight spreads do not always immediately lead to wide spreads, yields remain high, ongoing dispersion, strong fundamentals, and supportive technicals.

Read the full article arrow_forward

DOWNLOAD PDF

Our Latest Insights

Webinar: Tariff impacts on global markets
Globalisation isn’t dead. It’s changing.
Treasury market turmoil: How might the Fed react?
World markets review —First quarter 2025
5 charts that put market volatility in perspective
Fixed Income Perspectives Q2 2025

PRO
Past results are not predictive of results in future periods. It is not possible to invest directly in an index, which is unmanaged. The value of investments and income from them can go down as well as up and you may lose some or all of your initial investment. This information is not intended to provide investment, tax or other advice, or to be a solicitation to buy or sell any securities.
 
Statements attributed to an individual represent the opinions of that individual as of the date published and do not necessarily reflect the opinions of Capital Group or its affiliates. All information is as at the date indicated unless otherwise stated. Some information may have been obtained from third parties, and as such the reliability of that information is not guaranteed.
 
Capital Group manages equity assets through three investment groups. These groups make investment and proxy voting decisions independently. Fixed income investment professionals provide fixed income research and investment management across the Capital organization; however, for securities with equity characteristics, they act solely on behalf of one of the three equity investment groups.