Long-Dated Credit Is Best Since 2008 as Buyers Bet on Pivot (1)

Credit investors are piling back into debt with long maturities hoping that the Federal Reserve will soon slow its pace of tightening.

US corporate debt due in 10 years or more has surged 9.5% so far this month, on track for its biggest leap since December 2008. The bonds have plunged more than 24% in 2022 given their high duration, which causes prices to drop as rates rise.

“With the sharp rise in interest rates, the long end of the [investment-grade] corporate bond market was the hardest hit during 2022,” said Nicholas Elfner, co-head of research at Breckinridge Capital ...