ING: US dollar corporate bond spreads continue to narrow, becoming less attractive than eurobonds. ING credit strategists noted in a research note that US dollar corporate bond credit spreads remain extremely tight, making them less attractive than their euro-denominated counterparts. The strategists stated that US credit spreads are likely to widen to reflect current risks, including a deteriorating labor market, trade tensions, and rising fiscal concerns. Furthermore, investor funds are expected to continue flowing into euro investment-grade bonds, while inflows into US corporate bonds will decline.
