Credit Markets Are Poised for a Gut Check After 10% Rally
- Barclays strategists warn investors to not get complacent
- Also, the dismantling of Libor is forestalled in loan market
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After rallying for the past three months, the mood is starting to shift in global credit markets.
Despite a selloff during the past week, a Bloomberg index tracking investment-grade corporate debt is still up 10% since the market bottom in October. And the premiums on new bond offerings in the US to Europe have largely vanished in the past few weeks. But now money managers and strategists are calling for a gut check.