Wall Street's biggest bond dealers are finding less and less to like about top-rated U.S. corporate bonds.

So much so that they're betting against some of them, with primary dealers last week turning the most bearish of 2015 on debt maturing in five to 10 years, Federal Reserve data show. The detail on banks' more-granular positions only covers January and February because the Fed just started reporting it.

In any event, it appears the fervent flight to the safety of high-quality corporate debt is coming to an abrupt end. The bonds have declined 1.3 percent in February, poised for their worst monthly decline since the taper tantrum of 2013, according to Bank of America Merrill Lynch index data. That's a reversal of January, when the debt gained 2.7 percent in its best start to a year since 1988.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.