Forget Yellen Froth Alarm: Junk Loans Are Hot, Per Funds
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The Federal Reserve can send all the warnings it wants about froth in the junk-loan market, but some of the biggest buyers aren’t listening.
Instead of backing away from the $750 billion U.S. market, they’re targeting the lowest-ranked portions of collateralized loan obligations, which pool the debt and slice it into pieces of various risk and return.