Investors demand higher premiums for newly issued corporate bonds
ING analysts say investors are becoming more cautious and requiring higher premiums to buy new corporate bonds amid high volatility in sovereign bond yields, seeking roughly 10–15 basis points of extra compensation.
Investors are becoming more cautious and are asking for higher premiums to buy newly issued bonds, ING's Jeroen van den Broek and Timothy Rahill said in a note. They said high volatility in sovereign bond yields has led investors to demand around 10 basis points to 15 basis points of extra compensation on new issues.