Corporate Bonds Give Powell the All-Clear Sign, at Least for Now
- Spreads tighten as P&G restarts investment-grade sales
- Leveraged loans continue fast pace, drawing increasing demand
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The U.S. corporate bond market has a message for Federal Reserve Chairman Jerome Powell: All is well, at least for now.
As the Fed signals the start of one of the biggest and fastest tightenings of monetary policy in recent years, credit risk gauges in the U.S. are still far below pre-pandemic levels and sales in the high-yield market remain hot. That’s even after spreads rose following the central bank’s meeting Wednesday, extending an increase for January.