Core Viewpoint - Corporate bonds, both investment-grade and high-yield, are performing well this year, but concerns about valuations may lead some investors to feel they have missed out on gains [1] Group 1: Performance and Valuation - Corporate bonds have been among the best-performing fixed income segments this year [1] - The yield spread between blue-chip company debt and US Treasuries is around 0.73 percentage points, close to levels last seen in the 1990s [3] - Elevated valuations may indicate that issuers are confident in their ability to service outstanding obligations [4] Group 2: Investment Opportunities - Actively managed funds like the Neuberger Berman Flexible Credit Income ETF (NBFC) may offer better opportunities for corporate bond exposure due to their ability to adjust portfolios based on valuation changes [2] - Some market observers believe that the ongoing government shutdown has contributed to higher corporate bond valuations, suggesting potential adjustments once the situation resolves [5] Group 3: Safety and Benchmarking - Investment-grade corporate bonds in the NBFC portfolio are being viewed as comparable or superior to Treasuries from a safety perspective [6] - There is a growing sentiment on Wall Street questioning whether Treasuries remain the best benchmark for corporate bonds, with some investors using interest-rate swaps as a reference rate [7] Group 4: Overall Outlook - Despite concerns about high valuations, there are still strong arguments supporting the case for corporate bonds and funds like NBFC [8]