US corporate bond investors don’t think the troubled run is over, survey shows

The ugliest year ever for US corporate-bond investors is expected to get uglier -- and they only have the Federal Reserve to blame. Picture: BLOOMBERG

The results underscore the bittersweet outlook for fixed-income investors that were hit during the first half of the year with the deepest losses since at least the early 1970s. The survey included responses from 707 investment professionals and individual investors. Yields on corporate bonds have edged steadily higher over Treasuries during the waves of selling that raced through fixed-income markets this year. That spread on investment-grade corporate debt reached as much as 160 basis points in July, according to Bloomberg’s index, before pulling back slightly.

As a result, some 86% of survey respondents said that companies are better positioned to weather a recession than they were in 2008. That’s in part because many businesses refinanced their debts after the Fed slashed rates in 2020. “We would urge extreme caution in the CCC segment,” McClain said. “Investors should take some duration and some credit risk, but too much of either is a recipe for disaster.”

“The high-yield market has become much more high quality — with more interest-rate sensitive BBs — in the last three to four years,” he said. “Because of this, the rate impact is going to be more pronounced in high yield than it has been historically.”

South Africa Latest News, South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

POLITICAL WEEK AHEAD: US secretary of state visiting SA amid renewed US-China tensionPOLITICAL WEEK AHEAD: US secretary of state visiting SA amid renewed US-China tension 🔒
Source: BDliveSA - 🏆 12. / 63 Read more »

US corporate bond investors don’t think the troubled run is over, survey showsTighter monetary policy is the biggest risk facing the corporate-debt market, MLIV Pulse survey shows Thanks for restoring my happiness in my dark days, During this period I invested $1500 and to my greatest surprise I got a return of $15,500. He's reliability can’t be equated _JamesAlderson
Source: BDliveSA - 🏆 12. / 63 Read more »

US Secretary of State visits South AfricaUS secretary of state Antony Blinken will attend the US - SA strategic dialogue with his counterpart, Naledi Pandor on Monday. For? So they can take back lessons of corruption and a more useless government. For what exactly?
Source: eNCA - 🏆 49. / 51 Read more »

Business Maverick: Stocks, US futures dip amid worries over Fed hikes: markets wrapAn Asian stock gauge slipped along with US equity futures on Monday, hampered by expectations of further aggressive Federal Reserve interest-rate hikes to tackle the highest inflation in a generation.
Source: dailymaverick - 🏆 3. / 84 Read more »

Business Maverick: Consumers’ US Inflation Expectations Drop Across All Time HorizonsConsumer expectations for US inflation over the coming years declined sharply in the latest survey by the Federal Reserve Bank of New York, a finding that may ease the Fed’s concern about ever-rising prices getting baked-in to household behavior.
Source: dailymaverick - 🏆 3. / 84 Read more »

Sasol is a Bain client - it will now study UK govt's sanction against US group | Fin24South African petrochemicals producer Sasol, which is a Bain client, says it will study a decision by the UK Cabinet Office to bar the US consultancy from state contracts for three years. | Fin24 Fin24 WTF after what they were trying to do to SA Sasol board must go Fin24 Thanks for restoring my happiness in my dark days, During this period I invested $1500 and to my greatest surprise I got a return of $15,500. He's reliability can’t be equated _JamesAlderson Fin24 Let's hope Sasol does the right thing. They cannot be linked to Bain.
Source: News24 - 🏆 4. / 80 Read more »