Have Corporate Bond Returns Generated a New Race to the Bottom?

Investment grade bonds have seen a 3% return this year, the highest since 2012. Despite concerns of a risk frenzy, new bond sales are at their slowest since 2013, indicating no such trend. Major companies like AT&T are reducing debt by repatriating cash and buying back debt, as stock investors reward debt reduction. This cautious approach is reflected in both stock and credit markets, where skepticism prevails. Companies are acting more responsibly with their finances, avoiding the creation of a supply glut that could lead to a sell-off.

What is the return percentage of investment grade bonds so far this year?

• 2%

• 4%

• 1%

• 3%

What is the pace of new bond sales compared to previous years?

• Fastest since 2012

• Fastest since 2010

• Slowest since 2013

• Unchanged since 2015

Which companies are mentioned as reducing their debt levels?

• Retail companies

• Tech companies

• Pharmaceutical companies

• Small startups

How is the current market rally described?

• An ignored rally

• A hated rally

• A neutral rally

• A loved rally

What is the market's attitude towards a risk-on environment?

• Indifferent

• Enthusiastic

• Supportive

• Skeptical