Reported 1 day ago
Vanguard, a leading U.S. asset manager, is optimistic about corporate bonds despite high valuations, forecasting that risks from tariffs will be mitigated by potential Federal Reserve interest rate cuts. With credit spreads at historical lows, demand for higher yields remains strong, although Vanguard acknowledges that tariff impacts on the economy are still unfolding. The firm anticipates moderate growth and continues to add credit risk to its portfolios, highlighting that current valuations are justified by solid fundamentals.
Source: YAHOO