State Street, Voya Seek Shelter From Default Risk

As rising energy prices and growing inflation fears make corporate bonds look increasingly risky, big money managers including State Street and Voya Investment Management have been looking at buying mortgage bonds and other securitized debt instead.

Mortgage bonds often perform better than US high-grade corporate debt in “risk off” markets where investors are becoming more fearful, wrote Spencer Rogers, strategist at Goldman Sachs, in a note this week.