Debt Rally Cracking as Double-Dip Fears Haunt: Credit Markets
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The rally that drove corporate bond prices to the highest in six years is showing signs of strain as worsening economic data rattle investor confidence that the U.S. can avoid relapsing into recession.
A benchmark gauge of U.S. corporate credit risk for companies ranging from Alcoa Inc. to Wal-Mart Stores Inc. has climbed for five days, reaching the highest in seven weeks. Relative yields on corporate bonds have been little changed this month, after tightening in July.