In the US, today's corporate bond environment offers something for issuers and investors alike: a unique, yet paradoxical juncture, writes Standard Life Investments' Jon Curran.
First, issuers continue taking advantage of low rates prevailing in the US and have managed to incur more debt without jeopardising their interest coverage. As a result, credit profiles have kept fairly stable amid record debt issuance at low coupons. For the investor, foreign buyers flocking to the US corporate market in search of higher yields support the technical picture. Indeed, we have seen foreign ownership of US investment grade bonds rising this year. What does the ECB's latest bond-buying plan mean for US corporate bonds? It should remain a good environment for US investo...
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