The average corporate bond yield is below fed funds rate. This is something that has not happened in the last thirty years. An argument can be made that corporate bonds are expensive, and need to increase their yield to become attractive again, but also the counter argument can be made that fed funds are extremely high (and therefore cheap) for current economic conditions and need to be lowered, and then corporate bonds may be fairly valued. Once the Fed response to inflation or unemployment is known, the value of this asset class will be revealed.
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Source: Tavi Costa
