The increase stands in contrast to the corporate bond sector
However, the structure of corporate bond markets has shifted significantly in recent years due to several factors, IOSCO reports
U.S. speculative-grade companies continue to benefit from investors’ hunt for yield in a continued low interest rate environment
A big market shock could trigger a rush for cash as happened in the crisis of 2008
The historical trading data is intended to encourage academic research on bond markets
Fitch reports that investment managers expect macroeconomic market conditions to improve and that they’re forecasting low default rates in 2017
Although Moody’s reports there were 10 defaults in January, the global speculative-grade default rate should fall to 3% by the end of this year
Moody’s reports that speculative-grade debt now represents more than 60% of total corporate debt due in 2017-21
The path is risky, but rising interest rates and more liquidity in bond markets could see bonds delivering more "normal" returns
Sovereign ratings have the greatest share of negative outlooks, at 21%, while the negative outlook bias is 10% for corporates and 11% for banks