“With yields so low, investors are willing to trust the Microsofts and Cokes of the world for the extra basis points,” Edward Marrinan, a macro credit strategist at RBS Securities, said in the Bloomberg article.
J.P. Morgan Chase & Co. argues that money managers could allocate 20% more than benchmark indices to acquire company securities in 2015, compared to 5% over five years ago.
SPDR Barclays High Yield Bond ETF
For more information on speculative-grade debt, visit our junk bonds category.
Max Chen contributed to this article. Tom Lydon’s clients own shares of JNK and HYG.