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Junk Bonds Revive as Sales Soar, Spreads Shrink: Credit Markets

The market for junk bonds is reviving, after at least seven companies pulled sales last week, signaling investors are gaining confidence that Europe’s sovereign debt crisis won’t infect the global economy.

International Lease Finance Corp. and Clearwire Corp. led speculative-grade companies selling $2.4 billion of debt yesterday, according to data compiled by Bloomberg. Relative yields have narrowed 29 basis points since Nov. 30 to 593 basis points, or 5.93 percentage points, the biggest two-day decline since May.