Reported 1 day ago
As US corporate bond issuers struggle to meet soaring investor demand, money managers are increasingly turning to the derivatives market. With investors holding approximately $74 billion more cash than available bond sales, they are gaining exposure to $110 billion in corporate debt through credit derivatives. Despite high coupon payments expected to diminish as the Federal Reserve lowers interest rates, the current environment is prompting significant allocation into derivatives, especially as corporate debt issuance slows amidst rising interest rates.
Source: YAHOO