Cybersecurity
Demand Rush Drops U.S. High-Grade Bond Spread to 2007 Levels
- Hunt for higher-yielding debt draws heavy overseas interest
- History says further to fall; Wells Fargo sees 2018 widening
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The strengthening economy has stoked demand for high-grade corporate bonds, dropping the spread on investment-grade debt to levels last seen before the financial crisis.
Demand for the bonds has been insatiable in 2017, with investors seeking out higher-quality securities during what may be the late stages of the credit cycle. Overseas investors made up a big chunk of that, hunting for higher-yielding assets than those found in domestic markets in Europe and Asia.