Global investors paring riskier bond holdings

[NEW YORK] Some of the biggest global investors have started to pull back from riskier fixed-income assets even as the Federal Reserve keeps on a green light for risk.

GAM and Standish are among those who say US investment grade and high-yield corporate bond prices have gone too far, making returns less compelling. They're aiming to get ahead of a market reversal that could be unpleasant once the Fed starts raising interest rates, probably next year.

"Valuations are getting stretched," said Jack Flaherty,...

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