Excerpt from Barron’s quoting DataTrek co-founder Nick Colas:
…. “That has spurred a wave of borrowing, and demand has been especially strong in lower-rated corners of bond markets, said Nicholas Colas, co-founder of DataTrek Research.
“The dash for trash has found a new, higher gear in US corporate bond markets,” Colas wrote in a note Monday.
To illustrate, Colas pointed to strengthening valuations of corporate bonds that are at the highest risk of getting downgraded out of their respective markets: In investment-grade bonds, those are the BBBs, or the three tiers closest to junk. In the high-yield market, those are the CCCs, the lowest-rated tiers before default”….
Read the full article here on Barron’s!