Buyers wanted: 70% of U.S. corporate bonds still trade at a discount - MarketWatch
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Much of the $11 trillion U.S. corporate bond market remains on sale more than two years since the Fe...
Original sourceAI Summary
70% of corporate bonds still trading at a discount, down from 95% in 2023. Low-coupon bonds issued in past decade contributing to discounts. Historic bond market rout due to Fed's interest rate hikes in 2022. Investors cautious despite discounts on 3% and 4% coupon bonds. Focus shifting to new bond supply with higher coupons amid market turbulence.
Market-Moving
- 70% of corporate bonds still trading at a discount, down from 95% in 2023.
- Low-coupon bonds issued in past decade contributing to discounts.
- Historic bond market rout due to Fed's interest rate hikes in 2022.
Key Facts
- 70% of corporate bonds still trading at a discount, down from 95% in 2023.
- Low-coupon bonds issued in past decade contributing to discounts.
- Historic bond market rout due to Fed's interest rate hikes in 2022.
- Investors cautious despite discounts on 3% and 4% coupon bonds.
- Focus shifting to new bond supply with higher coupons amid market turbulence.