Worst Performing Bond Sector In US Still Too Expensive for Many

Investment-grade corporate bonds have dropped 14.4% this year, suffering their worst first half on record and performing worse than every other major category of debt in the US. Many investors think it’s still too soon to dive back in.

The bonds are getting hit by a combination of inflation worries, which are triggering higher interest rates, and recession fears, which are raising concerns about at least some companies will find it harder to pay their obligations. Spreads on the debt, a measure of the market’s perception of credit risk, widened beyond 1.5 percentage point this week for the first time ...