Corporate Debt's a Buy for First Time Since 2016, Survey Says

  • BofA says investors no longer considering bonds overvalued
  • Around 38 percent of high-grade investors overweight the debt
Photographer: John Taggart/Bloomberg
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U.S. blue-chip bond valuations are so cheap that investors are taking notice and stocking upBloomberg Terminal on the debt, according to a Bank of America Corp. survey.

Around 38 percent of high-grade investors owned more of the debt than their benchmark indexes in January, about double the proportion in November, according to the survey. Those relatively high holdings come as a net 6 percent of money managers view the debt as cheap, based on risk premiums.