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My most outrageous fixed income call

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Although corporate credit spreads are historically tight, they can remain tight for a long time. A strong economy, meager non-government supply, discount bonds, and the rise of electronic trading argue for further compression of IG spreads. Ultimately, the IG spread should compress to the level of CDS, producing a spread target of roughly 50 bp.

Ned Davis Research | Fixed Income | Focus | Bi-Weekly

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