Link: https://www.wsj.com/articles/junk-has-never-been-so-valued-11612915150
Excerpt:
If you’re an over-leveraged company at risk of default, now’s your moment to load up on more debt. The average yield on U.S. junk bonds dropped below 4% for the first time on Monday amid a market scavenger hunt for higher returns.
The Federal Reserve has pushed down long-term interest rates by buying bonds and committed to keep short-term interest rates at near zero through 2023. While the central bank’s interventions were needed in March, it continued to buy corporate bonds well into the summer when markets didn’t need the support.
Author(s): WSJ Editorial Board
Publication Date: 9 February 2021
Publication Site: Wall Street Journal