Reported about 20 hours ago
As U.S. fiscal deficits grow, driven by tax cuts and increasing interest obligations, investors are withdrawing from government bonds and investing in corporate debt from U.S. and European companies. In recent months, significant capital has flowed into high-grade corporate bonds, as they are perceived as safer compared to Treasuries, which have seen a decline in their ratings. Observers note that corporate profits remain robust, making higher corporate debt valuations a worthy consideration despite potential risks.
Source: YAHOO