Economics
Blackrock, Morgan Stanley Favor Corporate Bonds
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Treasury yields that are approaching record lows are sending BlackRock Inc., the world’s biggest asset manager, and Morgan Stanley, one of the bond dealers that trade with the Federal Reserve, to corporate debt.
The 10-year yield of 1.51 percent is seven basis points, or 0.07 percentage point, from the all-time low set June 1. Bonds in an index of company debt offer yields that are 294 basis points more than Treasuries on average, Bank of America Merrill Lynch data show. Investor demand for corporate bonds has narrowed the gap, the so-called spread, from 348 on Dec. 31.