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Bond markets get riskier

Demand for high-yield junk bonds boosts prices; investor protections decline

Bond markets are growing riskier as investors seeking steady returns bid up prices and ignore some early warning signs similar to those that flashed during the credit bubble.

Last week, prices on high-yield, or junk, bonds hit their highest level since 2007, nearly double their lows of the credit crisis. Nine months into the year, companies have sold $172bn in junk bonds, already an annual record, according to data provider Dealogic.

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