18 October 2023
Surging benchmark interest rates have severely impacted the $10.6 trillion US corporate bond market. A hypothetical high-quality debt portfolio by BondCliQ Inc., which includes top companies like Coca-Cola, Boeing, and Microsoft, declined in value. Originally worth $1 million in early 2022, it’s now valued at $612,863. Despite these bonds being from highly-rated companies, the rise in interest rates has caused their value to diminish. This situation poses a financial dilemma for those depending on these bonds for income.