Schroders raised the global corporate bond rating to "neutral" and reduced the risk of a U.S. recession as a key factor.

One of the world's largest asset management giants, Schroders global, headquartered in the UK, raised its global corporate bond outlook from "negative" to "neutral" on Wednesday, and maintained an optimistic view on global stock markets, due to reduced risks of a US economic recession. This British asset management giant, based on stabilizing economic growth, rising demand, and positive consumer confidence data, upgraded its ratings for both US investment-grade bonds and high-yield bonds from "negative" to "neutral." It is understood that in May of this year, Moody's downgraded the US sovereign credit rating, and Trump's tariff policies caused volatility in benchmark US bonds, leading to an increase in corporate bond yields. Data from J.P. Morgan showed that in May, the issuance of US junk bonds reached $28.9 billion, the highest monthly level since September 2024. Schroders global stated that the "major risks for US investment-grade bonds seem to be in the past," but noted that overall domestic corporate bond valuations are still high. "Now the market can focus more on positive factors like deregulation and government spending," the institution added. Data from the US Treasury Department earlier this month showed a slight decrease in the amount of US bonds held by foreign investors from historic highs in April. The asset management company also reiterated its positive outlook on global stock markets, including US stocks, while maintaining a negative outlook on the US dollar. "Although economic uncertainty persists, we believe that downside risks are manageable, and the likelihood of a recession this year is low," analysts added.