Also, as noted, with the general level of interest rates relatively low, the incremental return from investing in lower credit looks more rewarding. (rba.gov.au)
At the same time, a tightening in monetary conditions that usually accompanies a rise in the general level of interest rates may cause a lagging reaction by weaker credits because of their inability to find sufficient funding, which in turn weakens the balance sheet of the high yield entity. (fidelity.com)
The aggressive reduction in interest rates needed to be complemented by timely movement in the other direction, once the emergency had passed, to establish a general level of interest rates more in keeping with the better economic outlook. (rba.gov.au)