Fixed income balancing act

As former British Prime Minister Harold Wilson once said, “A week is a long time in politics.” The ever-changing nature of the political world means credit investors are constantly trying to navigate and understand the potential impact of developments, both economically and on corporate fundamentals. Despite UK political uncertainty, the ongoing disruption in the Strait of Hormuz, and rising oil prices and government bond yields, corporate bonds are holding up well. What is fuelling this resilience? Why are credit spreads at historically tight levels? Where are the potential investment opportunities...