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Corporate Bonds Likely to Stay Pricey for Months, Barclays Says - bbg

CREDIT MACRO

• Barclays argues that current conditions are similar to the 2004 – 2006 period; economic growth persisting in the face of a hiking cycle.

• They also make the much-used argument that yields are still attractive here.

• We would add that the period coincided with a massive run up in structured credit which certainly compressed credit spreads. With a very different regulatory backdrop today we don’t expect to see spreads reach previous tights.

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