In the US, a $ 1.6 trillion market is hunting for junk bonds
According to reports from the Wall Street Journal, taking advantage of recent sales by retail investors, large funds are raking in junk bonds. This is a market that is worth US $ 1.6 trillion in the United States.
Institutional investors also seem to ignore the fears of those who believe that the multi-year rush of “junk” bonds is about to end. Since the end of 2008, these bonds – issued by companies with a rating below investment grade – have guaranteed returns of 150%. In the same period, the Dow Jones index on Wall Street gained 90%.