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Goldman says investment grade market can absorb new supply

Published 04/09/2018, 04:17 PM
© Reuters.  Goldman says investment grade market can absorb new supply
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  • Goldman Sachs (NYSE:GS) strategists say the high grade credit market can consume the flood of credit resulting from the M&A boom since the beginning of year.
  • Deal activity is up across all sectors since tax-cuts passed, but healthcare, TMT and energy make up more than half of all announced transactions since the start of 2018.
  • “The takeaway for the broader IG market is that M&A risk should be well-digested by spreads, especially given the recent widening,” Global Credit Strategist Amanda Lynam wrote in a note Monday. “That said, we do expect M&A to be a driver of dispersion across sectors, which is reflected in our sector views: we are underweight IG Healthcare and neutral on IG Energy.”
  • ETFs: LQD, VCLT, VCSH, VCIT, CORP, CSJ, IGI, CIU, SPSB, IGHG, CSI
  • Now read: Fund Spotlight: Finding Hidden Gemstones In Target Term CEFs


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