Junk-Bond Selloff Erodes Investor Optimism
- Treasury slump the driver, compounded by equity, oil weakness
- Low default rate, benign economic conditions remain supportive
Dwyer: A Correction Feels Healthy Until You Get One
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The worst day of the year for junk bonds rattled credit-investor confidence as risk assets suffered in sympathy with slumping Treasuries and stocks. But most portfolio managers don’t expect much more of a selloff.
The high-yield pain was most easily spotted in exchange-traded funds, the biggest of which dropped to the lowest since March.