Corporate Debt Has Paid Off Handsomely For Long-Term Bondholders
On its terminal, Bloomberg reports that “corporate bond investors have been going long this year, and it’s paid off for them.” Debt with at least 10 years until maturity is up 24% this year through Friday “as money managers clamor for the extra yield available for buying longer-term securities. The bonds are on track for their best annual returns since 1995, and in 2019 accounted for the largest proportion of debt sales since the crisis.” Voya Investment Management Co-Head of Investment Grade Credit Travis King said of the market, “It’s hard to see inflation or election fears materializing right now, and that’s why investors are relatively comfortable. At these inflation and yield levels, it looks like there’s a window to get in and out of these things and see them perform well.”