MCI - Is It Time To Start Taking Profits In Junk Bonds?
The Federal Reserve is expected to raise interest rates again later this month, but if that's another signal that headwinds are building for fixed-income securities, the warning isn't resonating in the junk bond market these days.
The crowd's appetite for below-investment-grade US debt remains strong in the eighth year of a US economic expansion. By some accounts, the hour is late and so there's reason to wonder if a full-throttle embrace of junk is wise. With yield spreads near post-recession lows and the expected trajectory of interest rates still pointing upward, the bears argue that