On April 10, Fidelity International pointed out that the market is currently underestimating the risks of economic downturn. In this environment, investors are turning to the fixed income market for safety, especially favoring US investment grade bonds, short-term credit and global bonds. Investors are taking a defensive stance, partly due to cautious sentiment towards US growth prospects, and partly because of the attractive yield differentials. Fidelity International noted that the yield curve is currently inverted, making short-term corporate bonds attractive. By choosing shorter-term bonds, investors can enjoy higher yields than longer-term bonds, making short-term credit an attractive choice. With several central banks downplaying rate cuts, the global environment supports stronger-than-expected economic resilience. However, concerns arise from excessive financing caused by fiscal deficits (such as the sharp expansion of US government debt). The US fiscal deficit is being filled by issuing Treasury securities, which mainly rely on the extraction of repurchase tools from the Federal Reserve, ultimately leading to a situation resembling debt monetization. In this environment, as core yields and spreads become attractive, the fixed income market (especially in defensive sectors) is becoming increasingly popular. For example, the total return on investment grade USD bonds now exceeds the dividend yield of the S&P 500 index. In addition, there is still significant room for yield to rise, providing a cushion for investors. The current yield on US high-yield bonds is 7.6%, and the yield would need to rise to 10% for the total return to disappear. Similarly, the yield on US investment grade bonds would need to increase by another 80 basis points for investors to incur losses. High-quality companies are better equipped to handle higher interest rates and bond refinancing, but lower-quality companies may struggle to pay interest. As the effects of monetary tightening begin to impact the economy, bankruptcy cases may increase. Nevertheless, the current default rate on high-yield bonds reflected in the market remains relatively low, but the situation could change once the economy slows down. Given the higher yield offered by short-term investment-grade bonds and lower credit and interest rate risks, investors can select investment opportunities in this area, with short-term bonds particularly attractive, allowing investors to benefit from the current phenomenon of yield curve inversion.