Bond it and they will come. If you can securitize it, you can sell it.
Junk bonds (rated at BB or lower) are trading at record low yields. Still not risky enough for you? An index of CCC or lower rated bonds tracked by BOA Merrill Lynch also hit a record low this month at 8.187%.
BOA Merrill Lynch indexes
Last month $11 billion in 10-year notes rated Ba3 by Moody’s sold for 6.25% in the biggest junk bond sale ever; 5-year notes of the same issuer sold with a yield of 4.875%.
Who is buying this stuff?
Central bankers around the world are warning about investors reaching for yield.
