Corporate spreads hit pandemic lows and are tipped to grind tighter

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By Mike Turner
03 Dec 2020

As European high grade corporate spreads bounce off their lowest levels in 10 months, there is growing expectation that spreads are going to continue with significant tightening next year.

The Europe Main index hit 46bp on Thursday, with the Crossover sinking to 244bp. These are levels not seen since February, before the coronavirus pandemic sent spreads soaring. 

But there is a growing consensus forming in the market that there is still a long way for spreads to tighten, ...

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