Short-term bonds typically act as a haven in turbulent times. But debt maturing in three years or less has been routed in recent days, punishing investors in markets ranging from corporate bonds to asset-backed debt. The selloff is the latest example of stressed investors resorting to extreme behavior at a time when the economic outlook is unsettled at best and market liquidity, the capacity to buy and sell quickly without roiling prices, is uneven. Many traders say that high-grade, short-term corporate bonds are being sold...

Source: Wall Street Journal March 18, 2020 14:48 UTC