Credit Market Outlook: Bonds Priced for the Benign

Corporate credit spreads are fairly valued--albeit at the tight end of the range that we view as fairly valued.

Mar 26, 2014

Mentioned: Bombardier Inc (BBD.B) , The ADT Corp (ADT) , Safeway Inc (SWY) , Kellogg Co (K) , AT&T Inc (T) , Weyerhaeuser Co (WY) , Cleveland-Cliffs Inc (CLF) , Masco Corp (MAS) , Cardinal Health Inc (CAH) , JPMorgan Chase & Co (JPM)

Corporate bond markets are pricing in a benign environment in the U.S.
Returns for the remainder of 2014 will be constrained by tight credit spreads and rising interest rates.
The spread between financial and industrial sectors holds steady.
Are larger LBO transactions coming back?
Economic growth in China shows further signs of slowing.
Downgrades outpace upgrades during the first quarter.

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David Sekera does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

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