Andrew Sheets: The Rise of Corporate Bond Yields

This podcast episode explores the factors driving the continued outperformance of corporate credit over equities. Despite modest declines in stock prices, credit spreads have remained tight due to favorable supply and demand dynamics, lower corporate issuance, and the mechanical advantage of credit in a high-interest rate environment. The positive carry property of credit, as well as the pause in interest rate increases by central banks, further supports this outperformance.