Credit risk fell in reaction to Donald Trump’s US presidential win, even though his presidency may be marred by tariffs and possible trade wars.

Investors looking for extra yield are driving corporate bonds to some of their tightest valuations of the year, pushing money managers including Pacific Investment Management Co. toward mortgage debt that looks much cheaper.

T. Rowe Price Group Inc., Allspring Global Investments and AllianceBernstein Holding LP are among investors seeking opportunities in longer-dated high-grade corporate bonds, reflecting bets that the peak in interest rates is nearing and a US recession would force policymakers to reverse course.

US companies’ earnings are strong enough that money managers like T. Rowe Price Group Inc. and PGIM Inc. expect corporate bonds to outperform Treasuries over the next 12 months, even if the economy suffers.

January’s optimism about the bond market seems like a long time ago.

The best start to a year for bond returns is helping fuel an unprecedented debt-sale bonanza by governments and companies around the world of more than half a trillion dollars.

Global bonds rebounded in November, adding a record $2.8 trillion in market value, as investors bet that central banks are getting a grip on inflation. But how long the party lasts is another matter.

Global bond investors face an old enemy -- inflation -- and the universe of fixed-income assets doesn’t look to offer much in the way of shelter.