Although the stockmarket has rallied strongly in recent weeks, it is striking that the corporate bond market has performed far less well. This is a worrying sign for those who believe in a lasting equity rally. The corporate debt market currently offers spreads that presuppose a high level of defaults; if that many companies are going bust, it is hard to see how equities can perform well.
We want to hear what you think about this article. Submit a letter to the editor or write to email@example.com.