The investment grade corporate bond market has been a stellar performer in recent months. While the additional capital gains have likely come as added good news to yield starved investors continuously in search for a safe place to park their capital, the recent surge in investment grade corporate bonds does raise an important question. Should we be seeing such dramatic price movements over fairly short periods of time in what many investors likely perceive to be an otherwise sleepy asset class category? In truth, a good deal more risk lurks under the surface of the investment grade corporate bond market than many investors may be aware.
Please click on the link to read more of my article on Seeking Alpha.