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Credit Mid-Year Outlook: Turbulence Ahead
Proceed with caution in the corporate bond market. Despite a strong start to 2019, it’s unlikely the strong pace of returns will continue in the second half of the year, especially in the lower-rated, riskier parts of the corporate bond market. Credit market returns have been strong this year While we’ve had a relatively neutral outlook on most corporate bond investments for the past few years, the risks now appear to outweigh the potential rewards, and investors should consider reducing exposure if their holdings are not in line with their risk tolerance or investing time horizon. With yields low and prices ... (full story)