This is your Markets Minute!

Columbia Threadneedle Global Rates Strategist Ed Al-Hussainy told Bloomberg that, even as spreads are compressing in quality, he’s still seeing exceptionally attractive valuation opportunity in investment grade credit bonds at the short end of the curve. That’s on top of the all in yields that are around 5%.

The dollar price of bonds in investment grade credit is very attractive. So even at current spreads, bonds are priced in the short end of the curve. $0.90 on the dollar. Those bonds are going to par. Right.

And they're going to par in the short term.So that presents an exceptionally attractive valuation opportunity. And then the all in yield, again, in the short part of the investment grade curve, which is very flat at the moment, five and a half percent, very attractive. So I focus less on spreads than the the return opportunity over the course of the next 12 to 24 months and the quality of the balance sheets that you're buying into very attractive.