Why the corporate bond sell-off isn't as scary as it looks

Fears of a recession and the Federal Reserve's aggressive rate hikes have pushed investors to dump corporate debt in recent weeks and pictured, the sign for Wall Street is seen with US flags outside the New York Stock Exchange in New York on June 16.

Fears of a recession and the Federal Reserve's aggressive rate hikes have pushed investors to dump corporate debt in recent weeks. The sell-off hasn't gotten as much attention as the bleeding in stocks or cryptocurrencies, but it's been painful.

What's happening: A major exchange-traded fund that tracks blue chip bonds from top-rated companies is down almost 18% year-to-date. So-called "junk" bonds issued by less creditworthy firms are 16% lower.

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