Credit Buyers Seek Refuge in Short-Dated Debt to Dodge Rate Risk

Credit Buyers Seek Refuge in Short-Dated Debt to Dodge Rate Risk Investors are embracing shorter-term corporate debt, locking in elevated yields while limiting their exposure to interest-rate volatility and market swings. The strategy is already paying off: over the past month, bonds maturing in less than five years have outperformed the broader Bloomberg euro investment grade corporate bond index as longer durations have struggled, and it’s a similar picture in the US. With front-end bonds offering stable income, there’s little to be gained by chasing marginally higher yields further along the curve.