Lurching high-yield spreads show a broken market

The sharp sell-off in credit in December and rapid recovery in the first quarter is a worrying sign of market dysfunction.

Euromoney spent the last month talking to the people running markets businesses at many of the world’s largest banks. It’s intriguing to learn what they are not particularly worried about – the threat from new technology, the prospect of disintermediation, the deteriorating macroeconomic backdrop, finding buyers for financial assets. They know they can acquire the best fintechs; they retain a lock on bringing issuers and investors together and slowing growth is not recession, even if geopolitics is jumpy.

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