After nearly a decade of ‘bull market’ gains, investors suffered an abrupt wake-up call in October due to fears of rising US interest rates, tightening monetary policy, trade tariffs, slower global growth, valuations and Italian nationalism. However despite these worries, spreads on US corporate BBB (at 1.5%) & junk (3.7%) bonds vs Treasuries have remained relatively stable, indicating to us that the turbulence is probably little more than a ‘healthy correction’