Skip to main content
Morningstar indexes
  • Home
  • Insights
  • Indexes
  • Capabilities
  • Resources
  • About Us

Perspective

Why Investors Are Rushing to Quality in the Bond Market

March 24, 2023


March 24, 2023


With the collapse of Silicon Valley Bank SIVB sparking fears of a broader banking industry crisis, there’s been a sudden divergence in performance within the bond market.

High-quality bonds, including US Treasuries, have surged in price while lower-quality, higher-yielding assets are falling.

“There’s a credit event on the horizon, and people are worried about what’s ahead,” says Alfonzo Bruno, associate portfolio manager for Morningstar Investment Management.

For example, since March 8, as the news from Silicon Valley Bank began to emerge, the Morningstar US Treasury Bond Index has gained 3.7% while the Morningstar US High Yield Bond Index—which tracks riskier corporate bonds—has fallen 0.7%.

The rally in Treasury bond prices has led to a significant drop in yields. On the US Treasury 2-year note, the yield has fallen to 3.76% from 5.05% on March 8, hitting its lowest level since September 2022.

Read on Morningstar.com

Related Topics

Fixed Income

Related Articles


European Leveraged Loans on the Rise
Fixed Income

Europe's Leveraged Loan Market Comes of Age
Fixed Income

Morningstar Quarterly US Fixed-Income Monitor: January-March 2025
Fixed Income
KEEP CONNECTED

Insights from the leading edge

We keep up with the evolving needs of investors in a way that only Morningstar can: by leveraging our heritage as a trusted provider of data and research.

Receive our news and insights

Be among the first to receive the latest Morningstar Indexes analysis and perspectives.

 
 
  • Company Site
  • Privacy Policy
  • Global Contacts
©2025 Morningstar, Inc. All rights reserved.