“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/
(Visited 23 times, 1 visits today)
Related posts:
Call of Duty loser calls in SWAT team hoax on kid who beat him
Manhattan's New Most Expensive Listing: A $130 Million Penthouse
Another Amazing Fat Tuesday on Wall Street
Banks shiver as UBS swallows $885 million U.S. fine
Obamacare, Simplified
Joe Biden runs up bill of $585,000 in taxpayer funds for just ONE NIGHT in five-star Paris hotel
Lawmakers urge Obama to allow public debate on military action against Syria
Legal Marijuana Faces Another Federal Hurdle: Taxes
European monitoring of civilians still far less than U.S., but growing
Kanye West Sues: STOP USING MY FACE ... On Virtual Currency
Japan to keep printing money for years to come, so learn to enjoy it
United Nations report: ‘Designer drug’ use, abuse and production surging
BP found ‘grossly negligent’ in 2010 U.S. spill, facing $18 billion fine
Myanmar Stock Exchange Launch Moved Up To 2013 After Security Exchange Law Passed
U.S. Supreme Court declines to review NSA phone spying case