Excerpt from The Wall Street Journal …

This Investor Says There Are Signs of Stress in Corporate Bonds

By Hardika Singh — May 17, 2023 — Quoted: David R. Kotok

David Kotok says signs of stress are emerging in the weakest part of the investment-grade bond market.

But to see it, investors have to strip out debt from commodities producers, according to a recent note from the chief investment officer at Cumberland Advisors.

Pandemic-era gains in the price of everything from oil to copper has improved the prospects of resource producers, helping paint a rosy picture of the overall health of companies in the lowest tier of high-quality bonds, Kotok wrote Wednesday.

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