Battered Safe Credit Is Now a ‘Screaming Buy’ After Yield Jump

After historic losses this year, high-quality corporate debt has flipped the script to become one of the hottest asset classes in the market.

Investors are increasing allocations to investment-grade corporate bonds as the yield they can get just by holding the debt to maturity has reached its highest level since the global financial crisis. At 5.6%, global high-grade yields now exceed where junk-rated debt was trading at the start of the year, according to Bloomberg indexes.

It’s a major shift for the $10 trillion global high-grade market, which has suffered massive losses this year amid aggressive central bank rate hikes. ...