Traders are betting more against corporate bonds as credit spreads tighten due to a strong global economy.

Asset managers have pushed these spreads down, leading some market participants to seek downside protection.

According to data from S&P Global Market Intelligence, corporate bond shorts have increased by 25% in the past year, reaching nearly $336 billion.

In contrast, institutional long positions have only grown by 10.6%, totaling $4.6 trillion.

This shift indicates that short positions now make up about 7.3% of long positions, up from 6.4% a year ago, suggesting a growing belief that prices may soon decrease.