Further fueling the rise in the corporate bond market, supply and demand fundamentals are supporting the forward momentum. Deutsche Bank AG analysts have also pointed out that mutual funds have acquired $275 billion worth of bonds sold by companies with relatively strong balance sheets in 2015 or far outstripping the net supply of new issues, Bloomberg reports.
“The bond market action suggests market participants are just not happy right now, and they seem to be getting even less happy. Therefore, despite the good news coming from the stock market, all is not well,” adds Barron’s.
For more information on the fixed-income market, visit our bond ETFs category.
iShares 20+ Year Treasury Bond ETF
Tom Lydon’s clients own shares of LQD and TLT.