Why Jeff Gundlach Is Very Scared of High-Grade Corporate Bonds

Money manager Bonnie Baha can’t think of a worse time to be buying the bonds of America’s blue-chip companies.

They’re yielding about the least ever, with the average dipping under 2.9 percent this month. Prices of the debt are more sensitive to interest-rate increases than at any time in the past 20 years, just as the Federal Reserve considers raising them. And now the fortress balance sheets that companies built in response to the 2008 credit crisis are being eroded, with executives increasingly eager to borrow cheaply to satisfy shareholders starved of revenue growth in a sluggish economy.