Investors don't want to sell their corporate-bond holdings because they know it could be difficult to buy them back in the future. But they are are feeling less secure owning the debt, especially at such high valuations. So they're either getting exposure to the securities in a way that's easy to exit quickly in a pinch, or they're paying a premium to cover any losses incurred during a selloff.
"There are events on the horizon that could cause a dislocation," said Anindya Basu, a credit derivatives strategist at Citigroup Inc. "You're seeing that feed through to the market."
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