Low interest rates are increasing investor demand for corporate bonds. High-yield and investment grade corporate bond issuance both showed a significant increase in the first quarter of 2011. High-yield bond issuance jumped 36% internationally and 29% domestically. Investment grade figures were 14% and 19% for the quarter. Standard & Poor’s indicated that expected default rates will fall to 1.6%.
To read a related Smart Money article, please click here:
http://www.smartmoney.com/investing/bonds/new-corporate-bonds-feed-investor-frenzy-1303423914177/
Jim Sutliff