Reported 1 day ago
In the current unpredictable credit landscape, risky bonds are outperforming traditional safe bonds, primarily due to a shift in focus towards interest income. With strong inflows into credit funds and narrowing spreads, money managers are increasingly attracted to low-rated and junior bonds, which offer higher coupons to mitigate falling prices amid rising yields. Despite the potential risks of these investments, the shorter duration of high-yield bonds makes them less sensitive to yield changes, leading to a more favorable position in a volatile market.
Source: YAHOO