Reported 3 days ago
Amidst unusually calm movements in the global credit market, money managers are expressing concern that the sustained rally in corporate bonds may signal potential risks ahead. With investment-grade spreads at historic lows, firms like Franklin Templeton and AXA are reducing their exposure to corporate bonds and increasing allocations to safer assets such as government bonds and cash, citing inadequate rewards for the associated risks. Despite continued inflows into corporate bond funds and low volatility, experts warn of a potential complacency in investor behavior, leading to uncertainty in making future investment decisions.
Source: YAHOO