[Outlook-in-Five] Rethink risk-free

Speaker: Boh Hui Ling, Head of Fixed Income Strategy, Bank of Singapore Inversions between corporate and sovereign bond yields are becoming more common, challenging the long-held notion of sovereigns as the risk-free benchmark.Recent trends have shown top-tier corporates like Microsoft and Johnson & Johnson are now trading at tighter spreads than US Treasuries. This reflects strong corporate fundamentals and scarcity value, amid rising sovereign debt and frequent government issuance. At the same time, stress is emerging in lower-rated credit segments, with recent credit events pointing to potential fault lines. What does this mean for fixed income positioning?For more market insights, go to ⁠⁠⁠⁠⁠⁠⁠⁠Bank of Singapore Insights⁠⁠⁠⁠⁠⁠⁠⁠ to check out our Chief Investment Office's research publications.