Bond investors take ever-riskier bets in hunt for greater return

Bond investors, emboldened by a recovering economy and a global vaccine rollout, are taking on more risk, sometimes a lot more risk.


Insurers, pension systems and high-grade credit managers in the US and Europe are buying bigger amounts of junk-rated debt to offset shrinking yields, forcing high-yield investors to jostle for allocations of BB rated bonds -- the safest and largest part of their class with 60 percent of the market.

Some fund managers, used to having their pick of speculative-grade bonds, have seen their orders for new bonds cut in recent months, they said, declining to be identified because the information is private.

Read the whole article

Get 14 days free access.
No credit card required.

Get full access for you and your coworkers.

Start a free company trial today

More from AMWatch

Further reading

Related articles

Latest news

See all jobs

Latest news from FinansWatch (dk)

Latest news from EnergyWatch

Latest news from ShippingWatch