What percentage of the investment grade market is BBB rated?

Today, the BBB-rated segment now makes up over 50% of the investment grade market versus only 17% in 2001. Over the past decade, U.S.-related BBB corporate debt has grown 2.2x to $2.5 trillion, representing $1.2 trillion of net new issuance and $745 billion of downgrades from a higher credit quality. 2

Why do investors prefer BBB bonds?

This is due to a number of global factors. In the U.S., after years of near-zero interest rates, investors are searching for yield, making them look at lower-quality investment grade securities like BBB bonds.

How has BBB corporate debt changed over the past decade?

Over the past decade, U.S.-related BBB corporate debt has grown 2.2x to $2.5 trillion, representing $1.2 trillion of net new issuance and $745 billion of downgrades from a higher credit quality. 2 Credit spreads, or the additional yield investors receive above Treasury bonds, have not widened, even as more debt has been issued.