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 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. 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.