Barclay's Weekly Credit Call

Last week spreads weakened across the board even as overall volatility remained subdued.

In investment grade, yields touched record lows, however spreads remain wide which indicates that yields could move even lower.

Investors should consider new issues in the high yield market as a potential source of relative outperformance.

In the macro front, fiscal policies that complement and support monetary stimulus will be key to avoiding unfavorable broad market outcomes that negatively impact risk asset returns.

As corporate fundamentals remain on stable footing, we maintain our constructive stance on credit in the medium term. However risks linked to poor economic growth have risen of late, and we recommend hedging these risks through selective cyclical shorts or tail risk trades.

Full report via the article titile link.

Barron's: Uncle Sam: Depending on the Kindness of Strangers

EVEN AS U.S. INVESTORS AND companies ramp up investments in faster growing emerging economies like Brazil, Russia, India and China, these countries are reciprocating by snapping up record amounts of U.S. Treasuries. Total foreign ownership of Treasuries has grown to 48%, from 29% a decade ago. And, in a sign of their rising power, the BRICs now account for nearly a third of the foreign ownership, with China by far the biggest holder.