Posted 3/8/2024, 12:00:14 PM
Investors Embrace Risk As 'Everything Boom' Takes Hold Despite Rate Fears
- Credit investors shrugging off high interest rates, economic uncertainty, embracing risk
- Junk bonds outperforming, demand high, negative yields returning as "everything boom" takes hold
- Investors believe economy can withstand rate hikes, have cash to deploy, see Fed pivoting dovishly
- Euphoria concerning some as markets seen as "priced for perfection" and due a correction
- Risky deals back on, borrowing costs falling, private equity reviving risky buyout financing
