Turning bearish on investment grade credit (LQD), BofA strategists recommend the purchase of CDS...

|By:, SA News Editor

Turning bearish on investment grade credit (LQD), BofA strategists recommend the purchase of CDS pegged to the paper. Redemptions from mutual funds and ETFs in response to lower prices is likely to accelerate the drop. "We think that in the short-term, investment grade credit spreads are biased wider."