Monday, March 3, 2014

Junk Bonds Continue to Rally; Junk Spreads Continue to Narrow

The above chart of the junk bond ETF shows that investors are still reaching for yield.  The above chart is still very bullish.  Let's place that information into the following context:

Above is a graph of the CCC yield minus the 10-year CMT Treasury spread, which has been declining for the last 2 years.

The graph above places this data into a 2-year time frame.