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Yields on broad investment-grade benchmarks are now sitting at around 5%.
Investment-grade corporate bond yields are now around 5%, much higher than the past decade.
KEY POINTS
- Rising yields are driven by Treasury rates, not worsening corporate fundamentals or credit spreads.
- Most investment-grade companies have low near-term refinancing needs and strong interest coverage ratios.
- Telecommunications, large banks, insurance companies, and select utilities are highlighted as attractive sectors.
- Exposure of investment-grade bonds to private credit contagion risks appears limited, according to Wells Fargo.
COMPANIES
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