A previous version of this working paper was originally published in November 2023.

Twenty-five years of stable bond returns and exceptionally low losses help explain the growth and standardization of the SASB market following the Global Financial Crisis. Historically low interest rates and pandemic-era uncertainties help explain the recent dominance of short-term, floating-rate SASBs. Factors contributing to their strong performance have weakened considerably recently, exposing them to emerging risks, making their recent dominance unsustainable.

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