The Negative Effects of the Credit Spread on Corporate Issuers

If you look at a credit spread, we're essentially back to the middle of last year. So it has been quite beneficial to a lot of the risk asset issuers. A lot of that obviously is locked in loans at much lower rates but at some point these debts are going to have to be rolled over into higher rates. I think there's a bifurcated market. One part of the market is doing really well, like the large caps and the large caps dominate the credit spreads. And this is my view of why the credit spread has not tightened as much.

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