The Year Ahead 2023
Higher Yields, Headwinds for Stocks Make 2023 Year of the Bond
One money manager sees a “once-in-a-decade opportunity” in corporate debt.
Illustration: Nolan Pelletier
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Investors found few places to hide from last year’s demolition derby, which hit corporate bonds harder than it did stocks on a global basis. But if Wall Street’s credit managers and prognosticators are right, 2023 will be the year that corporate bonds boom.
Despite a late-year rally, the value of corporate debt declined worldwide in 2022 by $2.6 trillion, or nearly 17%, according to Bloomberg data. Blue-chip corporate debt had the worst year on record after a similar fall. By comparison, stocks fell 13.7%.