Junk-Bond Volatility Gains in Split With Stocks: Credit Markets
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Price swings in junk bonds are widening, diverging from stocks that are the least volatile in more than five years as concern mounts that the eight-month rally in the debt is coming to an end.
A measure of 30-day volatility in relative yields of U.S. speculative-grade corporate bonds almost doubled to 20 last week from a record-low of 10.5 at the end of December, according to data compiled by Bloomberg. That compares with a 32 percent decline this year in the VIX index, a benchmark for expected stock-market volatility, to 12.3 on Feb. 19, the lowest since April 2007.