Global corporate bonds: unchartered territory highlights the need for a long-term perspective
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What are the key factors currently impacting the global corporate bond market? The big question affecting the markets is how far into the cycle we are. The US economy is experiencing its longest running expansion in more than 100 years. Now we are coming to the end of a pattern of quantitative easing across the globe and heading into the early stages of quantitative tightening – this will bring some uncertainty. However, fundamentals remain relatively neutral and there are still many opportunities out there in the global corporate bond universe. Fortunately, we are not seeing the scale of excesses we have seen in past cycles, particularly when it comes to levels of leverage, albeit it is increasing.