State Street, Voya Seek Shelter From Default Risk

Major money managers like State Street and Voya Investment Management are shifting from corporate bonds to mortgage bonds and other securitized debt. This move is a response to rising energy prices, inflation fears, and increased default risk in corporate debt, which has been exacerbated by geopolitical events and concerns over corporate profits. Mortgage bonds are seen as a safer alternative, offering better performance in “risk off” markets and potential benefits if interest rates fall.