by Bill McBride on 9/19/2010 08:47:00 PM
Sunday, September 19, 2010
From the Financial Times: Junk bond prices hit pre-crisis levels
Strong investor demand for junk bonds has pushed the average price on such corporate debt to its highest level since June 2007, when companies could borrow with ease at the height of the credit boom.And from the WSJ: Bond Markets Get Riskier
except with permission
Bond markets are growing riskier as investors seeking steady returns bid up prices and ignore some early warning signs similar to those that flashed during the credit bubble.This seems like investors chasing yield - and that is making it easy to sell junk bonds. Oh well ...
Last week, prices on high-yield, or junk, bonds, hit their highest level since 2007, nearly double their lows of the credit crisis. Nine months into the year, companies have sold $172 billion in junk bonds, already an annual record, according to data provider Dealogic.
Posted by Bill McBride on 9/19/2010 08:47:00 PM