Credit investors should celebrate the election of Donald Trump as his reforms could revolutionize the corporate bond market, that’s according to a report issued by Bank of America Merrill Lynch at the end of last week.
Bond Market Losses Close To Reaching $1 Trillion
Issued on Trump’s inauguration day, Bank of America’s credit strategy report compiled by credit strategists Hans Mikkelsen and Yuriy Shchuchinov, highlights the potential unintended consequences of Trump’s policy proposals for the corporate bond market, as the reduction in tax rates, and potential reduction in interest deductibility combine to encourage companies to pay down debt.
Trump’s Reforms Could Revolutionize The Corporate Bond Market
Mikkelsen and Shchuchinov citing research from “a very large academic literature” on the elasticity between corporate...
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