Corporate Bonds Are The Safest They’ve Been in Almost a Decade

The quality of the global high-grade credit market hasn’t been this good since the early stages of the easy money era.

Safe single A bonds are close to becoming the biggest part of investment grade indexes for the first time in about 10 years. At the same time, there are fewer risky bonds in the group. That means investors are buying a higher-quality basket overall, and supports the view of some market participants that valuations aren’t as stretched as they seem.

“Rating agencies are following the debt ratios of the companies, which appear to be getting better. And, of course, ...