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Corporate Bonds Face Storm as Volatility Surges
27 Sep
Summary
- Corporate bonds show resilience despite global government bond selloff.
- Bond market volatility is increasing, signaling potential trouble.
- Retail investors' nerves often precede issues in the corporate debt market.

Corporate bonds have demonstrated remarkable resilience, holding steady even as global government bonds experience a significant selloff. This period of stability, however, may be nearing its end.
Currently, bond market volatility is surging. This metric, which measures uncertainty surrounding bond yield directions, has historically been a precursor to trouble for corporate debt.
Nervousness among retail investors has often preceded periods of distress in the corporate bond market. As volatility rises, attention turns to how these investors will react.