Spread tightening could boost corporate debt

|By:, SA News Editor

Even as it recently upped its forecast for long-term Treasury yields, Barclays is constructive on corporate paper as "credit fundamentals in aggregate have remained largely intact." The team of Meli and Rogoff note interest coverage is at record-high levels.

Recognizing the risk from Fed "policy normalization," the team still expects modest returns for the rest of the year from spread tightening.

Barclays' 3.75% 10-year Treasury call last week.

Corporate bond ETFs: LQD, CBND, CORP, FLTR, FLRN, ITR, LWC, SCPB, VCIT, VCLT, VCSH, IGU, IGS, CSJ, QLTA, QLTB, BSCI, BSCJ, BSCK, BSCL, BSCM.