May 31, 2014


The first quarter saw spreads in the credit markets continue to compress, with high yield as the big outperformer across asset classes despite a very strong 2013. Financials also had a strong run to close out 2013 and continued to do well in 2014. Spreads across credit markets widened at the end of January, with financials widening by about 20 bps, but now many of the investment grade corporate credits are marking post-crisis tights.