Corporate bond investments take on unique characteristics in recessionary and volatile markets. In the latest of a monthly series, Gregory Seals discusses the interaction of credit risk and interest rate risk in corporate bond investments during a recession.

Can you explain the recent interest in corporate bonds?
Investment grade corporate bonds, both in the US and Europe, underperformed risk-free government securities dramatically in 2008, with yield spreads relative to government bonds widening from 200 basis points to 600 bps near the end of the year.