Investors turn risk-on for some junk debt

Investors were still wary of “buying riskier credits when such companies could be challenged by higher costs and less hospitable economic conditions,” said SMBC's Marrinan. — Reuters

New York: It’s fear and greed in the fixed-income markets once again as traders bet the US Federal Reserve (Fed) is done raising interest rates, but aren’t quite sure that it won’t still break the US economy.

Case in point is the market for low-rated companies. In recent days, as it started to appear that the Fed rate-hiking cycle might have peaked, investors have shown more willingness to dip their toes back into junk-rated bonds.