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Junk Debt Yield Premium Narrows to Least in Six Years in Europe

Investors are getting the least compensation for holding junk bonds instead of investment-grade debt in euros in more than six years.

The yield difference between speculative-grade notes and higher-rated securities narrowed to 2.9 percentage points from 4.8 percentage points a year earlier, Bank of America Merrill Lynch index data show. High-yield bond sales surged to a record 71 billion euros ($98 billion) in Europe this year, according to data compiled by Bloomberg.