March 2025 – Context on Credit Spreads: Should Investors be Concerned?
Summary
Our clients routinely ask us to comment on the overall levels and trends in corporate credit spreads. For the last year or so, these inquiries have taken on a greater sense of urgency as spreads have tightened significantly. While we agree that the backdrop for spreads warrants monitoring, we do not believe investors should be alarmed. Even in the event of a mean reversion scenario, we think the long-term merits of an allocation to credit remain in place.
