What Will Satisfy the Market's Thirst for High-Grade U.S. Bonds?
- Corporate issues hit $700 billion in 2017 amid tight spreads
- Investors keep their eyes on Fed unwinding, corporate leverage
BlackRock's Cameron Watt Says There's a Shortage of Bonds
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The demand for U.S. investment-grade bonds shows little sign of abating anytime soon, even with the specter of hawkish central bank policies looming.
Companies sold more than $700 billion in bonds in the first half of 2017 and spreads are at at their tightest since 2014. On July 17, the Markit CDX North America Investment Grade Index, a gauge of investor adversity to risk, hit its lowest level since September 2014.