Curve Favors Short-Term Debt as Fed Prints Cash: Credit Markets
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Investors are favoring shorter-maturity corporate debt over longer-dated bonds by the most since credit markets froze, wagering central banks will succeed in sparking inflation.
The gap in relative yields on bonds issued by companies worldwide maturing in less than three years and debt due in seven to 10 years has widened to 47 basis points, or 0.47 percentage point, almost double the difference on June 30 and the widest since Sept. 19, 2008, according to Bank of America Merrill Lynch index data.