Valuation Angst Is Being Stoked by Fed’s Big Cut: Credit Weekly
- Investors are hunting for higher yields in riskier assets
- Floating rate debt in focus in case it deteriorates: BlackRock
nvestors have been setting aside the potential negatives and diving deeper into the riskiest corners of credit in the hunt for higher yields.
Photographer: Michael Nagle/BloombergThis article is for subscribers only.
Investors are pouring money into corporate bonds, risk premiums are grinding tighter, and the Federal Reserve’s interest rate cut is reigniting hopes the US will dodge a recession.
Some money managers say the market is too complacent about causes for concern now.