Insights

Above-average yields, solid investor demand, and stable credit fundamentals are counterbalanced by tight spreads, rising event risk, and a slowing labor market driving a modest overweight to the corporate sector, with a defensive posture.

Tight credit spreads, solid demand, stable credit fundamentals, and tariff-related uncertainty drive a modest overweight to corporate bonds.

IG corporate new issuance surprised to the upside and registered a record first quarter with about $585 billion of bonds issued.