Go long CLO triple-A and pick cash bonds over CDS, says JP Morgan

By Dan Alderson

Going long European CLO triple A paper remains one of JP Morgan strategists’ favourite trades following the European Central Bank stimulus announcement last week, despite these tranches having rallied 14bp on average since the bank first backed them. They also predict cash credit to outperform CDS

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TAGS: CDS Europe High yield bonds Investment grade credit JP Morgan Research CLO Credit derivatives