Analysis-Investors turn risk-on for some junk debt but not all
It's fear and greed in the fixed-income markets once again as traders bet the Federal Reserve is done raising interest rates, but aren't quite sure that it won't still break the U.S. economy. "There is a tug of war between those who believe the Fed is engineering a soft landing and those who are still fearful that a recession is going to result from such aggressive tightening,” said Edward Marrinan, credit strategist at SMBC Nikko Securities Americas. Junk bond spreads, the additional interest rate investors demand over safe Treasury bonds, tightened sharply.