Investors are backing out of or taking active bets against high-priced corporate credit, where they anticipate a correction in response to signs of slowing economic growth that could eventually impact stocks.
In interviews and client research, global asset managers and some of the world's biggest banks cautioned that credit pricing had reached levels consistent with a much stronger economic outlook than official forecasters anticipate for this year.
"We've turned very defensive in terms of developed market credit," said Mike Riddell, lead portfolio manager for strategic bond strategies at Fidelity International.
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