A $1 Trillion Junk Pile May Need 25% Yield to Be a Buy, UBS Says

  • Selloff still leaves riskiest corporate bonds too expensive
  • S&P expects defaults to spike amid global economic headwinds

Even after the riskiest junk bonds plunged 9 percent this year, they’ll need to get much cheaper before investors feel comfortable stepping in to buy the $1 trillion of stressed or distressed credit in high yield, according to UBS AG.

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