This all adds up to some pretty impressive improvement on the margin, even if all is not yet back to normal. It would be nice if the Congress types would pay some attention to this good news. But if they did it might spoil their fun, because they love thinking that spending our money will be good for everyone.
With the Fed pledging that the days of easy money will be with us for quite some time, it is reasonable to expect that money will find its way into the nooks and crannies of the economy and lubricate the wheels of commerce at least a little bit. Easy money will help offset the slump in demand, and likely keep default rates from rising as high as many still fear. Easy money is also a good antidote to the deflationary forces that the bond market still fears. Easy money is already at work in commodity land, helping to push most commodity prices up after their vertiginous plunge from July through late November. I think this adds up to a good case for liking high-yield and emerging market bonds.
Full disclosure: I am long HYG and EMD.