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BAML's High Yield Master II Index falls through 7%, and nears the record low level of 6.95% set...

BAML's High Yield Master II Index falls through 7%, and nears the record low level of 6.95% set in 2005 (when it was just the ML High Yield Index). The 10-year Treasury yield was in the 4-5% range then, as opposed to 1.92% today, meaning spreads are nowhere near as tight now, meaning maybe, high yield still has room to run.
Comments (1)
  • rchauvinjr
    , contributor
    Comments (4) | Send Message
     
    To be perfectly clear, the YIELD TO MATURITY fell through 7%, not the index. Clarity is important when talking bond statistics. THis is good news for the economy, but also indicates ongoing opportunity for investors. The yield has room to fall farther.
    3 May 2012, 09:18 PM Reply Like
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