Bet on beta compression - except in sub fin CDS, say BofA strategists

By Dan Alderson

Beta compression will be a dominant theme in 2021 for high yield versus investment grade CDS and bonds, financial versus non-financial credit and subordinated versus senior financial bonds, say Bank or America strategists in a research note. Short volatility positions are also attractive, they add, while cautioning sub versus senior financial CDS could buck the trend

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TAGS: CDS Europe High yield bonds Investment grade credit Research BofA Credit derivatives North America