Barclays says US credit spreads likely to widen in the coming six months

Via a Barclays note:

• US credit spreads are likely to widen in the coming six months
• Due to prevailing highly uncertain environment

The background to this is that the spreads have come in over the past two weeks, from extremes after Trump’s April 2 tarif announcements. Since then, Barclays says prospects of trade agreements between the U.S. and China, low corporate bonds supply, and better-than-expected corporate earnings have brought them back in.

But, risks remain:

• related to tariffs
• “We remain cautious and still expect spreads to be wider in the next six months”

This article was written by Eamonn Sheridan at www.forexlive.com.