Everything’s Expensive. There’s Nowhere to Hide: Credit Weekly

Credit market bargain shoppers are having the hardest time finding deals in at least a generation.

A relentless rally has left valuations stretched on just about all high-grade company debt globally. The difference between spreads on individual bonds and the average of the index is the lowest on record, according to data compiled by Bloomberg going back to 2009.

Risk premiums are low for top-notch and weaker companies alike. In junk bonds the spread variability, or dispersion, is at its lowest since right before the onset of the Covid-19 pandemic.

Investors looking to juice their returns now typically have to ...