Utilities: stoking the flames
The utility sector has experienced massive spread compression over the past several months. With the sector expected to underperform credit, the question for many is by how much and what opportunities are left open for investors
The continuing decline of utility paper spreads well into this year has been accompanied by a tightening of the sector versus true corporate bond spreads. The downward spiral in spreads has attracted the attention of many utility firms to the favourable issuing conditions. This has translated into a flow of bond issuance since January, with utility companies tapping the market to the tune of over Eu20 billion. This wave of issuance has done nothing to stop spreads cascading in, but
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