Share of Market Value in Bloomberg Barclays USD IG

Since 1990, the amount of BBB-rated bonds has doubled. This is only one step away from junk bonds. 

Keep in mind that many investment grade investors own BBB-rated bonds, but they are not allowed to hold junk-rated bonds.

So, any drop in the credit ratings could amplify the next recession.

Image: Deutsche Bank Global Research

Share of Market Value in Bloomberg Barclays USD IG