Has the Federal Reserve finally burst the junk bond bubble? Perhaps, but then why is oil price inflation absent, yes oil has gone up we know but just wait.
Junk bonds took a pounding last week as investors fled the asset class due to rising rates and concerns about the passing of the Trump administration’s proposed tax changes.
Reflecting the sell-off, investors pulled $1.3 billion from global exchange-traded funds that track high-yield bonds during the week according to Bloomberg. The news outlet notes that investors have been pulling back from the asset class thanks to concerns that they “won’t be compensated for the risks of investing in bonds of companies with relatively fragile balance sheets if political risks rise or...
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