Three Charts That Show the Corporate Bond Market Has Come Roaring Back
It seems you can't keep a lid on U.S. company debt.
Newell Rubbermaid, maker of storage containers and Calphalon cookware, said third-quarter profit fell 8.7 percent and earnings this quarter may be less than forecast.
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Well, that was fast.
After flirting with disaster in early February, the U.S. corporate bond market is resurgent, with investors lining up to to buy a deluge of new issuance.
The extra return investors demand for holding investment-grade corporate bonds instead of U.S. Treasuries is now flat for the year, indicating revived demand. "This completes a dramatic reversal after high-grade excess returns have spent virtually the entire year in negative territory," Yuriy Shchuchinov, BofAML credit analyst, wrote in a note to clients.