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Corporate bonds may hold up despite Fed rate hikes

WSJ Markets argues that a firm economy and slower tech issuance could help support corporate debt as borrowing conditions tighten.

Reported · Written up by our desk · Corporate Bonds

The Wall Street Journal Markets says investors should not dismiss corporate bonds simply because the Federal Reserve is raising rates, pointing to conditions that could help credit perform even as yields rise.

The outlet highlights two potential supports, a healthy economy and reduced issuance from technology companies, suggesting the supply side of corporate debt could be less of a headwind.

Taken together, the article suggests that corporate debt could still benefit from the combination of underlying economic strength and a lower volume of new borrowing in parts of the market.

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