Fed's move boosts confidence in high-quality corporate bonds

12/18/2008 | Wall Street Journal, The

The Federal Reserve's move to reduce interest rates has forced some fixed-income investors away from Treasury bonds and into slightly riskier assets, such as high-quality corporate bonds. "There is relative value in the investment-grade market and sentiment is shifting that way," said Bill Larkin of Cabot Money Management. Higher-risk bonds are also seeing modest improvement, although investors remain cautious as defaults are expected to increase next year.

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