Soapbox: Why equities and credit warrant attention

Recent years have been kind to corporate credit and equities. Now, with loose central bank monetary policy spilling over into 2014, companies will benefit from low debt-servicing costs, as well as the expected speed-up in the global recovery. The resulting increase in consumer and investor confidence should further reduce the risk premium demanded for equities. And if the economy has improved enough for central banks to start hiking rates, it has probably improved enough for the yield spreads on corporate bonds to tighten and boost the bonds’ value. What we have, as we move further in...