Rate accompli: Are rising interest rates bad for all assets?
Many Happy Returns
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Credit Spreads in a Rising Interest Rate Environment
If you're a dodgy company which looks like you might default on your debt you'll pay an additional interest rate. The more risky you are the bigger that credit spread is going to be. So these spreads will widen when there's a crisis and they'll tighten as you come out of it. At the moment we've got a very quiet credit market but I suspect that's about to change.
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