Updated

Updated · Bloomberg Tax · Jun 4

Goldman’s Lynam Warns Credit Spreads Stay Near Pre-War Levels as Issuance Hits Record Highs

Updated

Updated · Bloomberg Tax · Jun 4

Goldman’s Lynam Warns Credit Spreads Stay Near Pre-War Levels as Issuance Hits Record Highs

1 articles · Updated · Bloomberg Tax · Jun 4

Tight corporate-bond spreads are sitting near pre-war levels even as the economic backdrop has become markedly tougher, Goldman’s Lotfi Karoui and Ben Emons? No—Lynam said, calling the setup an “uncomfortable tension” in credit markets.
Robust demand from pensions and insurance companies is helping absorb record corporate issuance, supporting bond prices despite macro headwinds that would normally pressure spreads wider.
US companies still face high inflation, elevated debt-funding costs, weaker consumers and slowing growth, alongside higher fuel and other input costs from the broader geopolitical shock.
That leaves credit markets looking resilient for now, but with valuations offering little cushion if economic stress deepens or investor demand weakens.

Sources

Why do corporate bonds seem stable while businesses face crushing costs from conflict, inflation, and tariffs?

Is the institutional rush into private credit creating a hidden bubble that could trigger the next financial shock?

As the classic 60/40 portfolio falters, what new strategies can shield investors from today’s synchronized market risks?

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