Positive Stance On The US IG Market

The dollar credit markets have performed well in recent weeks, bolstered by stronger than expected US growth of around 2%, the gradual normalisation of monetary policy and, especially, the resurgence of optimism related to a possible tax reform.

Dollar IG credit spreads tightened by 9bp in September and by more than 23bp since the beginning of the year. They are now close to their lowest points recorded since the crisis. Why are we maintaining our positive recommendation on dollar Investment Grade credit?