Credit Investors Retreat Up the Curve as Duration Risk Overshadows Carry
Fresh strategy notes favour low-duration allocations and warn that investment-grade ETFs still carry too much interest-rate sensitivity even as yields improve income profiles.
Portfolio commentary is converging on a short-duration tilt: LQD is flagged as offering better income but excessive rate risk, while low-duration additions are being made in credit-oriented trusts. The positioning shift reflects lingering uncertainty over the terminal policy rate and long-end term premium.