Bonds
Investors in Bank Bonds Say Opportunity Outweighs NYCB-Tied Risks
- Demand is still robust for US investment-grade corporate bonds
- Financial debt has outperformed corporate peers this year
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Insatiable demand for blue-chip bonds in the US is pushing investors to shrug off any jitters tied to New York Community Bancorp’s risky exposure to real estate.
Financial institution debt has outperformed the broader market since late last month, when NYCB said it would slash its dividend and build a loan-loss provision that was much bigger than analysts expected. That stands in contrast to lingering unease among regulators and in the stock market, where a wider gauge of bank shares has slipped about 5% from a late-January peak.