NEW YORK--(BUSINESS WIRE)--Kroll Bond Rating Agency (KBRA) has released a new research report entitled “Size Matters – But So Does Credit Quality.” The report makes the following key points:
- While the path the market has travelled is important, investors would be wise at this stage of the credit cycle to acknowledge the misalignment of risk and reward in corporate credit markets, primarily caused by central bank intervention.
- This phenomenon has become more pronounced since the U.S. election, a period when an ever-larger new issue calendar has been absorbed while spreads remain at or near two-year tights, and when a number of deals have priced well through rating thresholds.
- KBRA is advocating a return to the basic blocking and tackling of credit analysis, in order to evaluate the fair value of a bond in relation to its underlying credit rating, and to stay ahead of the corporate bond pricing normalization that is on the horizon.
To view the report, please click here.
About Kroll Bond Rating Agency
KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).