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 general sentiment towards the current rally in the stock and credit markets?

What factors contribute to the skepticism surrounding the risk-on environment?