Thornburg Investment Management Jeff Klingelhofer in Bloomberg

The Everything Rally Comes to Derivatives Market

  • Bulls like CDS liquidity, valuation as analysts ask for hedges
  • Spreads in high-grade contracts approach post-crisis lows

Bond fund managers have so much cash they’re turning to the derivatives market to put it to work, pushing down the cost of protection against defaults close to levels that prevailed when central banks were just starting to raise interest rates.

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