By stopping their bond-buying programs, the European Central Bank and the Federal Reserve would leave credit, including the market for government bonds, more vulnerable to market movements, according to SocGen.

Global credit already looks overvalued, the strategists said. Sustained demand for riskier corporate bonds has reduced the spread between their yields and comparable government bonds to the lowest levels in three years.


Like Societe Generale's credit strategists, the firm's economists see a risk that the US economy starts to slow down in 2019 or 2020 amid lower profit margins. Economists at other firms including Morgan Stanley and Guggenheim have also underscored their year-ahead outlooks with warnings that 2018 could represent a peak.

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