U.S. Junk-Bond Rally Gathers Pace With Yields Approaching 4%
- Debt’s December returns beat most other fixed-income assets
- High-yield bond sales may reach about $30 billion in January
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U.S. junk bonds have returned almost 2% in December, beating most other parts of the fixed income market and paving the way for borrowers to raise more debt fast out of the gates in 2022.
The risky debt has gained about 1.9% in December, the biggest monthly return in more than a year, according to Bloomberg index data, after experiencing one of the worst months since the pandemic started in November. U.S. investment-grade bonds have fared less well, down 0.16% over the same time.