Demand for US corporate bonds skyrockets
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Bond prices have continued to rise.
Markets expect the Fed to cut interest rates further.
Bond prices are inversely correlated with borrowing costs.
Analysts believe a “soft landing” is priced completely into the market at this point.
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Generally seen as a proxy risk for default (lower spread = lower risk of default).
Investment grade bond’s spread is at just 0.83% (Smallest gap since March 2005).
High yield bond’s spread is at just 2.89% (Smallest gap since June 2007).
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Resilient economy continues to boost corporate bonds.
Corporate bonds are more risky than US Treasuries.
Buyers are choosing to ignore risks to capture the higher yields from corporate bonds
