Company Debt With a Long Maturity Jumped the Most Since 2008
- Bonds due in over 10 years are on track to gain 10% this month
- Investors are hoping the Fed will slow the pace of rate hikes
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Credit investors are piling back into debt with long maturities hoping that the Federal Reserve will soon slow its pace of tightening.
US corporate debt due in 10 years or more has surged 9.5% so far this month, on track for its biggest leap since December 2008. The bonds have plunged more than 24% in 2022 given their high duration, which causes prices to drop as rates rise.