UBS: Strange Things Are Happening In The Bond Market

The performance of bonds, namely investment-grade and sovereign issues this year has been a key talking point for asset managers and investors around the world. If you didn’t enter 2016 owning investment-grade credit, it’s likely you’ve underperformed. Even though more than $13 trillion of credit is currently trading with a negative yield, investors continue to plough money into the sector seeking security and returns over yield in a low growth, uncertain world. high yield paradise Could Turn Into A Nightmare: BAML Analysis from UBS concludes that a year-to-date credit market returns have been a direct result of investment managers trying…