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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
US
- The chart below shows that the high yield bond spread between Asia and US has recently reached a 10-year high at 350bps.
- After reached a low of -200bps in 2015, the spread has been gradually rising in the past 5 years, with the next key 'resistance' standing at 430bps.
- Interestingly, the significant divergence in debt ratios between Asia and Western economies (i.e. US) following the Covid shock did not lead to a sharp increase in risk premium in US High Yield bonds (relative to Asian HY bonds).
- Hence, the Fed hawkish stance could also generate a sudden negative surprise in the high yield market as index prices have been surging in the past year due to the constant liquidity injections from major central banks.
Source: Morgan Stanley
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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