Investors Now See Some Corporate Bonds as Safer Bets Than Government Debt

In the $150 trillion global bond market, investors are coming to the conclusion that some companies are safer bets than even the most powerful governments.

In corporate boardrooms since the pandemic era, executives have dealt with the rise in interest rates by keeping budgets lean and reducing overall indebtedness. Meanwhile, governments in rich countries continue to spend, with the average debt-to-output ratio across the Group of Seven industrialized nations set to keep rising until the end of this decade at least.