Corporate Credit Emerges as Hideaway From Volatile Bond Markets

Strong global demand for high-grade corporate debt and a slowdown in issuance are protecting investors from the worst of the volatility that is engulfing bond markets.

While money continues to flow into funds for safe credit, analysts say that companies have front-loaded bond sales this year to such an extent that the remaining issuers would attract plenty of keen buyers. This should lessen the impact of surging Treasury yields on borrowing costs as traders keep dialing back the timing of interest rate cuts by the Federal Reserve.

“Anecdotal evidence shows that there is still cash to put to work and ...