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Investment Grade (chart2) looks much more
advanced in the sell off, I would expect this move to continue to 109-110
before finding support. This is 2 or 3% lower from here. A failure to hold the
level would point to 103-105 (so 7-9% lower)
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HY has held much better but now is
catching up (chart1). My central scenario implies a continuation in the sell
off to continue to the first golden rectangle (84-87), which 6% lower. If this
level doesn’t hold a move to the strong support area at 80-82.5(8/10% lower )
is totally possible in the medium term.
Chart1
Chart2
