“Despite the severity of the recession and the weakness of the recovery, U.S. companies have continued to thrive— while government revenue has collapsed as a percentage of GDP,” Koesterich added. “U.S. companies are also holding more than $2 trillion in cash representing roughly 7% of company assets, the highest level since 1963.”
Additionally, given the spread between corporate yields and Treasuries is two times the 60-year average, corporate bonds look relatively cheap.
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For more information on corporate bonds, visit our corporate bonds category.
Max Chen contributed to this article.