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U.S. Junk Bond Market Sets Record-Low Coupon in Relentless Rally

  • Can-maker Ball Corp. pays 2.875% yield on 10-year debt
  • Rate is lowest ever for new issue due in at least five years
Ball aluminum cup
Ball aluminum cupSource: Ball
Updated on

Ball Corp. sold $1.3 billion of junk bonds at record-low yields amid a rally triggered by the Federal Reserve’s historic support for the market and heavy inflows into funds that buy the risky debt.

The aluminum packaging company priced the 10-year notes at a 2.875% yield, according to a person with knowledge of the matter. That’s the lowest-ever for a U.S. junk bond with a maturity of five years or longer, according to data compiled by Bloomberg.