Investors Wary of Stocks Are Flocking to Junk Bonds
Investors may be avoiding high-yielding dividend stocks this year, but they’re snapping up high-yield bonds.
Investor demand has surged for so-called junk bonds, or fixed-income securities that don’t have the B-level or better ratings that Treasurys, municipals and top-flight corporates carry.
In fact, last week marked a fresh record for junk bond offerings, with $19.7 billion coming onto the market through 27 new deals, according to data from Dealogic.
That was nearly four times the average weekly issuance so far in 2012 and broke a record that had stood since May 2011.