23 Sep 2025 | 5 Mins Read
Vanguard positive on US credit despite ongoing tariff risks
Flipitmoney
Vanguard is bullish on corporate bonds despite high valuations due to healthy fundamentals, attractive yields, and a proactive Fed. Investment-grade credit spreads declined to 74 bps, lowest since 1998. Vanguard's Sara Devereux believes tariffs will have a moderate impact, and rate cuts will offset this. The Fed is expected to cut rates additional times this and next year to about 3% by 2026.