U.S. Junk-Bond Yields Hit New Low as Investors Undaunted by Risk
- Strong economic backdrop, yield pursuit lift high-yield market
- Low funding costs, energy rally have driven record debt sales
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U.S. junk-bond yields fell to a record low Monday as an accelerating economic recovery and the Federal Reserve’s low interest rate policy lead investors to double down on risk.
Speculative-grade corporate bond yields dropped four basis points to close at 3.84%, breaching the previous low set in May, according to Bloomberg Barclays index data.