Year-over-year, the Barclays Global Corporate Investment Grade Bond index (Global Corp IG) has returned +8.3% (duration 7.2 / yield-to-worst 1.7%). The Sherman ratio is an interest rate risk measure and represents the yield per unit of duration. In other words, a Sherman ratio of 1 means that it would take a 100bps rise in interest rates over one year to offset the yield of a bond. Hence, for the Global Corp IG index with a Sherman ratio of 0.2, interest rates would have to rise by 20bps only to offset the yield of the bond. Investors are not adequately paid for risks in Global Corp IG bonds.