There are three reasons to be optimistic about credit bonds: first, continuous liquidity has eased concerns about credit risks. With the short-term macro-stability, the risk preference of the market can be improved, thus increasing the demand for credit bonds; The coexistence of early withdrawal of penalty interest will also drive the asset allocation of money funds to transfer to bonds, especially credit bonds. Secondly, because the inter-bank funds are still loose, there is still room for leverage strategy, and the coupon of credit bonds provides a certain guarantee for interest rate risk. According to the news, commercial banks will participate in the bond repurchase business of the exchange to increase the stability of the exchange's liquidity. Third, this quarter's substantial bond default is still a rare black swan event.
Under the weak recovery, the default risk of investment-grade credit bonds is low, the coupon rate is high, and the income will continue to perform well. In summary, the fund allocation is positive.