Investor Appetite for Bonds Remains Strong Despite Tight Spreads and Expectations of Fed Rate Cuts

Investors pouring money into credit markets, reaching for yield ahead of expected Fed interest rate cuts

Fund flows show continued strong demand for investment-grade and high-yield bonds

Spreads have tightened to near pre-pandemic lows as weight of money drives prices higher

Managers say it would take a dramatic Fed pivot on rate cuts to negatively impact sentiment

Riskiest debt also benefiting from rally, with distressed volumes falling almost 10% globally since early January