Voya’s Travis King Comments As Credit Buyers Double Down On BBB Bonds, High-Quality Junk
Bloomberg reported “as the Federal Reserve moves closer to expanding the money supply, corporate bond investors are snatching up notes and taking more risk – but not too much more.” Bloomberg said “prices on the lowest-rated investment-grade bonds are jumping, as are the highest-rated junk bonds. While high-yield investors are still favoring relatively safer securities, those that invest in high-grade are reaching for yield in the riskiest part of that market.” Travis King, head of Investment-Grade Credit at Voya Investment Management, said: “It’s been all buyers. Investors are going down the quality spectrum. That means the lower BBBs, the crossovers – stuff that trades wide.” King also “says he thinks the rally could continue, especially as more buyers from outside the U.S. step in.”