Deals
Junk Bonds Aren’t Feeling the Stock Market Pain
- Returns on debt with a CCC rating are beating the S&P 500
- Worst-quality leveraged loans delivered best returns
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If the violent swings in U.S. stocks are a harbinger of economic gloom and a change in the underpinnings for owning risky assets, someone forgot to tell junk credit investors.
The Bloomberg Barclays US Corporate High Yield Bond Index is down just 1.2 percent from its Oct. 2 peak, while the S&P 500 Index is mired in an 8 percent drop from September’s record high that’s deepening by the day.