“Corporate bonds are in high demand. Investors are practically trampling one another to buy them. One measure of the appetite for these bonds is the ‘spread,’ or difference in bond yields between corporate bonds (often seen as somewhat risky) and 10-year Treasury notes (one of the safest investments). The spread has narrowed to rates not seen since July 2007 — before the financial crisis — according to Bank of America Merrill Lynch. It’s a sign that companies are borrowing a lot of money, and that investors don’t view corporate debt as particularly risky right now. Investors only want an extra 1.25% when they buy corporate debt versus plain vanilla U.S. government debt.”
http://money.cnn.com/2014/06/11/investing/corporate-bonds/
Related posts:
Apartment starts surge; new home permits down 3% in 2014
Airport security accidentally fires flight attendant’s gun at Philadelphia airport
Microsoft reports 37,000 government data requests in first half of 2013
Bitcoin's $13.50 To $1,200 Eleven Month Climb---Now Taxes
Supreme Court: Warrants Are Generally Needed to Collect Cellphone Location Data
Scientists’ accidental find reveals Vitamin C kills tuberculosis bacteria
Gulf Arab youth get around segregation with smartphone flirting
Elderly patients could benefit significantly from using medical marijuana
Saving the rhino with U.S. military surveillance drones
Hagel and Kerry make case to Congress for attacking Syria
A General Gets Knifed
$1.4m Perth home put on the market for digital currency Bitcoin
We All Know Who Janet Yellen Is, And That's Terrifying
Family of Egypt’s Morsi threaten legal action over ‘abduction’
China Confronts Mounting Piles of Unsold Goods