High Yields Make Sovereign Bonds More Attractive than Corporate Peers
Dow Jones
3 hours ago
1043 GMT - Developed market sovereign bond yields are close to multi-year highs, making them increasingly more appealing than their corporate bond peers, Societe Generale's Juan Valencia says in a note. Sovereign bonds are perceived as safer assets compared to corporate bonds, as the latter face a higher risk of getting a rating downgrade or defaulting when bond yields are high, Valencia says. Elevated government bond yields could spark a migration from corporate bonds to government bonds, he says.
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