Junk Bonds Are The New Haven Assets
A record 84 percent of professional investors in a Bank of America survey released in April said bonds were overvalued. More than half also thought both stocks and bonds are too expensive, the most in 12 years.
Photographer: Robert Caplin/BloombergThis article is for subscribers only.
The new fixed-income haven is, of all things, the market for junk bonds.
With government securities in Germany to Japan and Ireland yielding less than nothing, money is pouring into exchange-traded funds that buy speculative-grade debt, traditionally the riskiest of fixed-income assets.