Feb 14, 2013
Forex Flash: Credit gridlock scenario – Goldman Sachs
A sluggish post-bust recovery, ultra-low risk-free yields and significant corporate surpluses have meant that non-financial corporate credit has been the asset of choice for many investors in the post-financial-crisis period. EM sovereign credit, while a smaller and less liquid market than US corporate credit, shares similar features. According to the Economics Research Team at Goldman Sachs, “As a consequence, a steady tightening in spreads and the ultra-low level of risk-free yields have pushed yields on corporate credit and EM US Dollar credits to decade lows.”
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