1513 GMT - Corporate bond spreads, especially on investment-grade credit, are "very tight," leaving little room for further gains, State Street Investment Management's Desmond Lawrence says. There are "good reasons for those spreads to be tight." Corporates are generally in good shape with generally strong balance sheets, and are priced for a very good earnings outcome, the senior investment strategist says. Corporate bonds are "still interesting" but given how tight spreads are State Street IM sees "probably better" opportunities in U.S. mortgage-backed securities and structured credit such as collateralized loan obligations (CLOs), Lawrence says. (emese.bartha@wsj.com)

(END) Dow Jones Newswires

January 21, 2026 10:13 ET (15:13 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.