Credit Investors Lose Money Like It’s 2018 on Duration Risk
- Apple, Bayer among issuers flooding market with long debt
- Stimulus bets, vaccine rollouts awaken yields from slumber
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The corporate world’s zeal for selling long-dated debt is hitting bondholders as long-feared interest rate risks finally break out.
Bonds with at least 10 years left to maturity have produced losses of around 3.2%, the worst start to a year since 2018 and more than twice the broader credit market’s decline, according to Bloomberg Barclays indexes. In the euro market, long bonds have fallen 0.8% in total-return terms against a broadly stable market.