Profit squeeze: Shoppers walk along New Bond Street in central London. Spreads on US high-grade corporate bonds could tighten to 55 bps. — Bloomberg
LONDON: Corporate-bond valuations are in nosebleed territory, flashing their biggest warning in almost 30 years as an influx of money from pension fund managers and insurers boosts competition for assets.
So far, investors are sanguine about the risk. Many money managers don’t see valuations coming back to Earth anytime soon.
