It appears that corporate bond investors are becoming more comfortable undertaking credit risk at these levels.
Rising rates and widening credit spreads took their toll in the first quarter of 2018.
Rising interest rates and widening credit spreads have taken their toll.
Several factors have led to this divergence.
The corporate bond market had myriad issues to deal with this past week.
Activity across the fixed-income markets was generally back to normal after a wild ride in early February.
Hotter-than-expected inflation sends short-term rates higher.
The spike in volatility last week drove a "risk off" sentiment among investors, which sent prices of risky assets down across the board.
Corporate credit spreads tightened early in the week but ran into rough seas in the latter half of the week.