Junk bond spreads decline steeply

 EmailPrint This Post Print This Post

As shown by the Merrill Lynch US High Yield Index, junk bond yields have declined considerably since the peak of October 2011. The decline of 211 basis points means the spread between high-yield debt and comparable US Treasuries has narrowed by 23%. With the U.S. 10-year Treasury Note yield at 1.97%, high-yield borrowers have to pay 8.96% per year to borrow money for a 10-year period. This is certainly a huge improvement from the levels in excess of 20% at the peak of the credit crisis in 2008.

Source: BofA Merrill Lynch Global Index System

Did you enjoy this post? If so, click here to subscribe to updates to Investment Postcards from Cape Town by e-mail.

OverSeas Radio Network

1 comment to Junk bond spreads decline steeply

Leave a Reply

You can use these HTML tags

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>




Top 100 Financial Blogs

Recent Posts

Charts & Indexes

Gold Price (US$)

Don Coxe’s Weekly Webcast

Podcast – Dow Jones

One minute - every hour - weekdays
(requires Windows Media Player)
newsflashr network
National Debt Clock

Calendar of Posts

January 2012
« Dec Feb »

Feed the Bull