Investors embrace long dated corporate bonds
Investors have been loading up on relatively higher yielding long term corporate bonds, in spite of the asset class seeing its average credit rating decline in recent years.
- Long dated corporate bond ETFs have seen $90m of inflows ytd, over twice the 2015 total
- BBB bonds make up 47% of the Markit iBoxx $ Corporates 10Y+ index, up from 41% in 2011
- Long dated US corporates have returned