The Financial Post reports in its Friday edition that investors are increasing bets that everything will turn out fine in the corporate bond market. A Bloomberg dispatch to the Post says portfolio managers are selling default protection at an increasing pace, a signal they see little risk on the horizon. Their position on the main investment-grade U.S. credit-default swap (CDS) index now amounts to more than $105-billion (U.S.), the most in at least three years. It is a similar picture in Europe. Typically, in times of stress, they would be buying this insurance to guard against corporate collapses. Now, they are so confident in companies' financial health, they are using these swaps to build large bullish positions on the whole high-grade market. This investment approach took off after sentiment rebounded from all the tariff turmoil and is being fuelled by cash pouring into credit. Bank of America is calling it part of a "new world credit order." It does come with risks: Any renewed bout of volatility if President Donald Trump unleashes a fresh round of trade levies next month could upend the market again. Formerly just a hedge against companies going bust, CDS indexes are now becoming a top choice as a positive wager.