Thought Leadership

High Grade Corporate Credit Research Commentary

August 15, 2017

In this commentary, Miriam Legrand, our Vice President of Corporate Credit Research in Fixed Income Investments, discusses the potentially imminent risks presented in the investment grade corporate credit space as a result of possible policy reform, mergers and acquisitions, and changing energy production.

Commentary Highlights:

  • Representing the largest constituent in the investment grade index, the financial sector faced headwinds, which contributed to weakness in 2Q17 trading revenues across fixed income divisions.
  • Retail continues to face mounting pressure given secular shifts.
  • A more resilient energy sector has seen the largest improvement in quarterly earnings despite declining prices and increased production and rising stockpiles.
  • We continue to view the broader corporate credit market favorably as earnings have continued to grow, potential for corporate tax reform remains, and new issuance has been matched by strong demand.

Please click here to read the commentary.