Junk Bond Index Leaps to All-Time High After Fed Flip to Dovish
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Junk bonds are at an all-time high after a six-day rally that followed a sharp dovish turn by the Fed. The Bloomberg Barclays US Corporate High Yield Bond Index hit a record 2,007 at the close yesterday.
High-yield bond funds have seen significant net inflows this year, while sales of new bonds are down 24 percent year-on-year. The index, which has a market value of $1.2 trillion, yesterday topped the the prior high of 2,004 set last October, just before credit markets plummeted.