Bryn Jones: Is the market jumping the gun?

COMMENT

New issuance has been conspicuous by its absence - it is certainly an interesting dynamic being played out in the market right now.

Mixed economic data are leading to high levels of volatility, exacerbated by alarmist talk about double dips by certain economists. True, trends in data have been far from linear, but perhaps the market is jumping the gun in terms of a negative outcome. Our take on the proceedings is that current volatility is a typical, almost ‘natural’, break within the current cycle. However, the outlook for credit is good. Firstly, there is a lot of cash waiting on the sidelines: billions of pounds worth of bonds are redeemed around this time of year, and there have been several tenders for cash. ...