, Columnist
Goldman Sachs Has a Point on Credit Recovery, But Be Very Careful
The bank's analysts say the worst of the widening of credit spreads may be over for high-grade issuers. But this doesn't apply to everyone.
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With $250 billion of new U.S. bond issues at investment grade since the middle of March, and 150 billion euros ($164 billion) in Europe, the high-end credit market is an undoubted beneficiary of the central banks’ coronavirus stimulus plans. The debt capital market is definitely back open.
Indeed, analysts at Goldman Sachs Group Inc. have bravely ventured that the worst of the widening of credit spreads — where the yield on corporate debt starts to increase faster than that of benchmark bonds — may be over for high-grade issuers.