Many investors say they find U.S. investment-grade credit attractive, yet the debt keeps underperforming riskier notes, largely due to rates. It's unclear why U.S. high-yield bonds have held in as much as they have, given the broader concerns about credit deterioration.
Yields on U.S. investment-grade bonds are the highest since 2009 while junk-debt yields are still far below recent highs. Top-rated company bonds have lost more than 20% so far this year, while riskier notes have declined by 14%.
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