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Tight Credit Spreads, K-Shaped Corporates?

by Robert Timper, Chief Global Fixed Income Strategist   Jeremie Peloso, Chief Strategist  

Corporate health remains supportive of tight credit spreads in both the US and Europe, but a growing divide is emerging beneath the surface. Investment-grade issuers continue to strengthen, while lower-rated borrowers face mounting pressures. Credit markets are pricing resilience, leaving investors vulnerable should corporate fundamentals begin to deteriorate.

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