Fear is diminishing in the corporate-bond market, but risks remain. US high-grade spreads are tight at 0.76 percentage point, near the highest level in decades. Heavy bond sales are expected for artificial intelligence investments in 2026, with overall US high-grade bond sales projected to reach $1.6 trillion. Oracle Corp. posted negative cash flow, signaling potential delays in data center projects. Massive debt-funded acquisitions and a friendly US government under President Trump could drive up bond sales. Despite strong performance, JPMorgan Chase & Co. strategists predict spread performance may not be sustainable into the new year.

Read more at Yahoo Finance: Corporate-Bond Investors Party as Hangover Looms: Credit Weekly