A rally in corporate bonds has pushed the reward for taking extra credit risk to historic lows, prompting warnings from some investors of “bubble-like behaviour” in parts of the market, reports FT

A significant rally in corporate bonds has resulted in the yield premium for taking on additional credit risk hitting historically low levels.

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A rally in corporate bonds has pushed the reward for taking extra credit risk to historic lows, prompting warnings from some investors of “bubble-like behaviour” in parts of the market, reports FT

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This raises concerns among some investors about potential bubble-like behavior, indicating that pricing may not align with underlying credit fundamentals and could suggest an overextension in the market, particularly as rates and economic conditions evolve.

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