Market Graphic - Credit spreads

Suki Mann, credit strategist at Societe Generale, argues that the confluence of economic conditions presents a unique opportunity to add risk - but be selective

Since the beginning of July, the credit markets have been blighted by extremely poor liquidity, which has led to a credit correction that, we must stress, has yet to signal we are in the throes of a structural bear market for credit. We are yet to be convinced that there is significant evidence that the current subprime-led credit/liquidity crisis will necessarily translate into an economic recession in the US. For sure, the technical backdrop to the markets is extremely difficult and whilst