Reported about 12 hours ago
As the global economy thrives, asset managers are pushing credit spreads to near-record lows, prompting a significant rise in corporate bond shorting, which has increased by 25% to nearly $336 billion over the past year. This surge in shorts reflects concerns about potential economic downturns and rising inflation, which some fund overseers are hedging against. Despite a healthy appetite for high-yield bonds resulting in tighter spreads and a surge in bond issuance, market experts warn that any macroeconomic deterioration could make shorting these securities profitable.
Source: YAHOO