Growth in risk appetite is continuing to have a beneficial impact on credit markets. Corporate bond spreads have tightened further over the past month. The global default rate for speculative grade borrowers is expected to rocket this year. But even after the recent rally, the risk-neutral probability of default implied by UK corporate bond spreads suggests a lot of bad news is still discounted.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services