Credit markets clawed back losses Friday, resuming a rally that’s propelled by insatiable demand for U.S. corporate debt.
The benchmark high-grade CDS index tightened more than 1 basis point, the best intraday performance since June 21. This followed the worst selloff since March in the previous session, as stock markets tumbled and investors fretted over inflation and the spread of Covid-19 variants.
“There was a classic risk-off sentiment driven by equities this week, and by the drop in rates and the yield curve flattening,” said Nicholas Elfner, co-head of research at Breckinridge Capital Advisors in Boston.
According to Elfner, ...