Corporate Bonds

There is little disagreement among investors and economists that the last few years have been highly unusual in many respects. An inflationary shock in developed markets, one of the fastest rate hiking cycles on record, the worst year in decades for government bonds (2022), and mild recessions with no movement in unemployment are just a few of the dynamics that have strayed from recent norms.

With banks and corporates breaking records for January bond issuance, Johnathan Owen looks at the drivers of the surge in supply and sounds a warning for investors on sharp pricing.