Credit Traders Are Betting Everything Will Turn Out Fine in Corporate Bond Market
The New York Stock Exchange in New York.
Photographer: Michael Nagle/BloombergInvestors are ramping up bets that everything will turn out fine in the corporate bond market.
Portfolio managers are selling default protection at an increasing pace, a signal they see little risk on the horizon. Their position on the main investment-grade US credit-default swap index now amounts to over $105 billion, the most in at least three years, based on data compiled by Barclays Plc and Bloomberg. It’s a similar picture in Europe.