Highest Yields Since ‘09 Have Credit Investors Ignoring Losses

The best yields in more than a decade have some investors looking harder at buying credit, even as companies have become increasingly reluctant to sell bonds in recent weeks.

Vanguard Group Inc.says now is the time to load up on investment-grade corporate bonds, particularly higher-quality securities, to benefit from strong rates and good overall returns. Richard Cheng, an investment-grade portfolio manager at Nuveen, sees demand for the notes as likely to be strong.

“The yield-focused investors have definitely regained interest in the asset class,” Cheng said in a phone interview. “They continue to show a preference for high-quality ...