Junk Yields Reach 14-Month High as Investors Shun Energy
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Investors are fleeing high-yield bonds as the meltdown in the energy industry pushes borrowing costs to the highest level in more than a year.
The average yield on speculative-grade debt surged to 6.74 percent, the most since October 2013, Bank of America Merrill Lynch index data show. Returns on the securities this year are on track to be the worst since the market collapsed in 2008, with gains of only 3.1 percent in 2014, index data show.