Corporate Bond Cash Flood: Too Few Bonds?

Corporate Bond Cash Flood: Too Few Bonds?

Update: 2025-09-20
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Corporate bond investors are flush with cash, creating a massive supply shortage as demand for new bonds far outstrips what's available. With over $74 billion uninvested, money managers are turning to credit derivatives to deploy capital, driving valuations sky-high and risk premiums to record lows. While the Fed's rate cuts threaten future returns, investors are scrambling to lock in current yields, making the market unbalanced but ripe with opportunity for those exploring alternative strategies.

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Corporate Bond Cash Flood: Too Few Bonds?

Corporate Bond Cash Flood: Too Few Bonds?