Surveillance: Central Bank Roundup with Posen
Bloomberg Surveillance
00:00
The Importance of Quality in the Bond Market
High-yield spreads in a typical recession go out to 800 basis points or 1,000 basis points. In today's world, that would be a 15% yield, which is kind of Armageddon. A lot of those big mega-cap tech companies are the double A's and triple A's. We're typically underweight that whole sector in the bond market; focus on areas where you get more spread.
Transcript
Play full episode
