Additionally, Matt Toms, head of US public fixed income for ING Investment Management, argues that investment-grade corporate debt has become more attractive in light of higher volatility after a multi-year rally in equities. [Bond ETFs Still Have a Place In Your Investment Portfolio]
“Equities have had a good run and now volatility has started to increase,” Toms said in the article. “Some managers, specially those catering to the institutional and pension fund community, simply do not want to handle any potential sell-off in the stock markets. For them, this is a good opportunity to sell and move to the longer portion of the high-grade market.”
For now, bond investors are staying put as inflationary pressure and interest rates remain low.
For more information on corporate debt, visit our corporate bonds category.
Max Chen contributed to this article.
Full disclosure: Tom Lydon’s clients own shares of LQD and HYG.