Credit Spreads Look Unlikely to Decline Much Further -- Market Talk

Dow Jones12-16 23:44

1543 GMT - Corporate bonds have solid fundamentals, but their spreads have little scope to decline further from current levels, State Street Investment Management says in its 2026 outlook. "Generally, spreads for both investment grade credit and high-yield debt are unlikely to decline significantly given current low levels," it says. Corporate credit still offers "reasonably attractive carry" and should remain a core allocation, but State Street IM says it sees more attractive opportunities in mortgages, structured credit, and private credit. (jessica.fleetham@wsj.com)

 

(END) Dow Jones Newswires

December 16, 2025 10:44 ET (15:44 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment