Investment-Grade Corporates: Is the Worst Behind Us?
A combination of higher interest rate sensitivity amid rising rates and negative supply/demand dynamics have weighed on investment-grade (IG) corporate bonds year to date, but the remainder of the year may be more pleasant for investors. IG corporate bonds have been the worst-performing domestic segment of fixed income so far in 2018, lagging Treasuries, mortgage-backed securities, and the broad high-quality fixed income market overall [Figure 1].
Mix of Headwinds
With interest rates rising meaningfully this year, IG corporates have been under pressure since the group possesses the most interest rate sensitivity o... Read more