May
25
2019
Off
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