On its risk appetite index, Credit Suisse views the index value of 5 as "euphoria". And we are headed there, as markets embrace risk.
Source: Credit Suisse
This is not surprising given where credit markets are trading. As an example, the Merrill European High Yield Index average yield is now below 4.5% (4.46% to be precise). Keep in mind this is sub-investment grade debt mostly from European issuers. The yield on these bonds is now less than half what it was just a year ago.
Not much else to say here other than enjoy it while it lasts.
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