Investment Grade Credit Underperforming High Yield

The video discusses the fixed income market, focusing on the bond update by Lisa Bromwich. It highlights the surprising performance of high yield bonds outperforming investment grade bonds during a risk-off period. The analysis covers year-to-date performance, showing significant losses for investment grade and slight gains for high yield. The discussion emphasizes that the current situation is not just about falling rates but also about credit risk, which has reached its highest levels since 2016.

What significant change occurred in the implied credit risk in investment grade bonds?

What levels of credit risk are being observed currently?