Stocks surged last month. But the market fireworks weren’t restricted to equities.
After a tough summer that saw junk bond yields hit 8% – a three-year high – corporate bonds are also staging a recovery. Issuance is on a comeback, with U.S. corporate bond sales over $100 billion last month (that figure includes all corporate bonds, not just high yield). This return of the risk appetite for fixed income investors may indicate that the economy is in better shape than many believe.