Junk-Bond Payout at Decade Low as Deutsche Warns on Risk: Chart

Investors are accepting the lowest pay-out for European junk bonds in a decade. The premium relative to high-grade peers has fallen to a pre-crisis low of 188 basis points as government debt yields languish near zero. In a report published Tuesday, Deutsche Bank AG strategists said they prefer obligations backed by stronger balance sheets to speculative-grade bonds with “stretched” valuations.

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