The Goldman credit research team led by Lotfi Karoui has published its last note for 2024 in which shares its 20 most important lessons for 2024. Below we excerpt the main highlights from the note (full report available to pro subscribers in the usual place).
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1. Near all-time tights for USD spreads. USD spreads compressed to an all-time tight of 74bp in IG and a near all-time tight of 253bp in HY. While Goldman expects spreads will remain within their recent range in upcoming quarters, the bank continues to advocate keeping hedges in portfolios, given the inherently negative asymmetry created by current spread levels.
