UBS strategists stated in a report that the valuation of U.S. investment-grade credit bonds with maturities of one to three years is relatively low, making them attractive.

They stated that the spread performance of short-term US investment-grade credit bonds has lagged behind the overall rally in other areas of the US credit bond market. In addition, these strategists noted that if the market begins to reflect expectations of an economic growth shock, it could prompt the Federal Reserve to be more inclined to cut interest rates, thereby providing a boost to short-term credit bonds.