Junk Bonds Overtaken by High Grade as 2014’s Favored Bet
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Bonds sold by investment-grade companies worldwide are on pace to deliver something they’ve managed only twice in the past 17 years: annual returns of at least 10 percent.
The debt has become a sweet spot for investors who see little threat of rising interest rates while avoiding the rush into higher-yielding junk bonds that last month handed buyers their biggest losses in a year. High-grade securities, on pace for an eighth straight monthly gain, have returned 6.5 percent since the end of 2013, according to the Bank of America Merrill Lynch Global Corporate Index.