These Junk Bond Outflows Show Just How Jumpy Buyers Have Become
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The promise of low borrowing costs for longer just doesn’t pack the punch it used to.
Last week should have been fantastic for the $1.3 trillion U.S. junk-bond market: the Federal Reserve scaled back its prediction for how quickly it will raise benchmark interest rates while also expressing confidence in the world’s biggest economy. That’s almost an ideal world for junk bonds.