Citi analysts paint sobering outlook on risk asset rally

Developed world's corporate bond rally not sustainable, says credit products strategy chief


THE world has piled on the economic growth bandwagon, but the bearish Matt King, Citi global head of credit products strategy, continues to tell clients that no, the developed world's corporate bond rally is not sustainable.

"We've just gone underweight in euro credit and there's a chance of being underweight in dollar credit. I think the whole situation is less durable than people tend to imagine," he said.

Mr King was one of four senior Citi analysts interviewed by The Business Times last week. Some, like Mr King, painted a sobering picture of the current rally in risky assets, though others were more positive.

Mr King made his points using fundamental data. He noted how euro-denominated...

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