Junk Yields Lining Up With Treasuries Sign of Bubble for BofA
- Yields on high-yield euro bonds converge with U.S. Treasuries
- Market needs a ‘reality check,’ according to Merrill analysts
The Biggest Risks Facing Bond Markets
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When Alan Greenspan warned about a bond bubble in a recent interview, he may well have been thinking about European junk bond yields.
The former Federal Reserve chairman, who famously coined the term “irrational exuberance,” would find ample grist for worry looking at the average rates of euro-denominated debt rated ‘BB.’