LQD - 3 Market Trends Impacting Investment-Grade Bonds And LQD
2024-05-15 15:49:58 ET
Summary
- Default rates are rising, making investment-grade securities more attractive than non-investment grade.
- Credit spreads are tightening, making treasuries and T-bills comparatively stronger than investment-grade bonds.
- Potential Federal Reserve cuts may lead to lower bond yields and higher bond prices.
- These issues impact investment-grade bonds, including LQD, in important ways.
In keeping with my continued coverage on interest rates and bonds , I thought to take a brief look at some recent trends impacting investment-grade bonds and bond funds. Three trends stand out.
Default rates are rising, increasing the attractiveness of investment-grade securities over non-investment....
3 Market Trends Impacting Investment-Grade Bonds And LQD