Icahn Warns on High-Yield Bonds in ‘Extremely Overheated’ Market

Markets are “extremely overheated,” particularly U.S. speculative-grade corporate bonds, billionaire investor Carl Icahn wrote on Twitter.

“If more respected investors had warned about the market in ’07, we might have avoided the crisis in ’08,” Icahn said in a post on his verified account Wednesday.

Companies have sold an unprecedented $2.3 trillion of junk bonds in the U.S. since the start of 2009 as investors sought higher-yielding assets while the Federal Reserve suppressed interest rates, data compiled by Bloomberg show. The securities have gained almost 149 percent during the period, Bank of America Merrill Lynch index data show.

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