Riskiest Junk Bonds Breach Level Last Seen in Lead-Up to 2008
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If history is a guide, the lowest-rated junk bonds may be sounding an alarm.
Risk premiums on CCC bonds dropped below 500 basis points late Monday, a level only seen twice in the last two decades -- the years leading up to the 2008 financial crisis, and right before the dotcom bubble burst, according to Bloomberg Barclays index data.