US corporate bonds are attracting investors as a safe haven amid stock market volatility, particularly after Nvidia Corp.’s recent struggles. High-grade corporate debt saw a 1.2% gain from the end of September through Friday, according to Bloomberg Index data. Meanwhile, the S&P 500 dropped about 1.1% over the same period, highlighting the market’s fragility.
Yields on investment-grade corporate bonds averaged 6% on Friday, marking some of the highest levels since the financial crisis. This has presented investors with an opportunity to secure strong income over the long term. The rally in corporate bonds reflects a broader shift toward safer assets as stock market turbulence persists.