FXStreet notes that while US corporate credit spreads are now close to their pre-pandemic levels, economists at Capital Economics think that they will fall further in general as the global economy recovers with the help of vaccines.

“The upshot is that we think that corporate bonds will typically make further gains over the next couple of years, against the backdrop of a further recover in the global economy; exceptionally loose monetary policy around much of the world; direct purchases by central banks; and a continued hunt for yield.”