Reported 3 days ago
Corporate bond valuations are at their highest in nearly three decades, driven by increased demand from pension funds and insurers, while competition for assets intensifies. Despite concerns over high valuations and potential risks from inflation, many investors remain attracted to yields that appear high relative to the last twenty years. Current expectations suggest spreads on US high-grade corporate bonds could further tighten, with various factors sustaining tight spreads in the market. However, significant shifts would be needed to alter current risk dynamics.
Source: YAHOO