US high-yield bonds are set for their first negative quarterly return since
2022, with losses of 1.1% and triple-C debt down 1.85%, as AI disruption fears
and rising Treasury yields curb risk appetite. Losses are the worst since Q2
2022. Morgan Stanley said spreads have widened in an orderly reset, not panic,
with yields about 300 basis points above Treasures, still near historic lows.
