Capitalizing on Credit Spreads.

Published: 02/05/2019

Capitalizing on Credit Spreads +
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Corporate bond spreads, otherwise known as credit spreads, are an important measure of risk, liquidity and general market conditions1. Credit spreads widen when market participants favor government bonds over corporate bonds, typically when economic conditions are expected to deteriorate. In 2018 credit spreads widened globally and reached a two year high on investor expectation of a slowdown in economic growth. This widening created an opportunity for TD Asset Management (TDAM) and our clients.

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