Pricey Credit Markets Fuel Rise of Funds That Can Buy Anything

Bond investors are increasingly favoring flexible funds designed to shift into whatever they find attractive, as lofty credit valuations reportedly leave little room for error. The trend signals a more cautious posture toward spread risk and potential downside if valuations compress.

Analysis

Bond investors are increasingly favoring flexible funds designed to shift into whatever they find attractive, as lofty credit valuations reportedly leave little room for error. The trend signals a more cautious posture toward spread risk and potential downside if valuations compress.