High yields are driving strong fixed-income demand.
There is strong demand for fixed income, specifically ultrashort income, core bonds, and high-yield credit, because yields in the 6% to 7% range are highly attractive to investors and retirees seeking income.
Investment grade corporate bonds are attractive. Yields north of 5.2% are drawing 12 consecutive weeks of inflows. Supply is lumpy but deals are multiple times oversubscribed, and the overall exposure to AI capex in the index remains manageable.
High yields are driving strong fixed-income demand.
There is strong demand for fixed income, specifically ultrashort income, core bonds, and high-yield credit, because yields in the 6% to 7% range are highly attractive to investors and retirees seeking income.
Investment-grade financial sector bonds offer attractive opportunities in core plus strategies. IG financials have solid balance sheets while high-yield financials carry too much leverage, making IG financials a favorable bet as dispersion rises.