Like Stocks, Junk Bonds Show Investor Jitters
The stock market isn’t the only place that’s been signaling jitters among investors. The $2.3 trillion market for risky U.S. corporate debt has also been under pressure. A five-year rally in junk bonds abruptly stalled last month. As with other higher-risk investments, investors have pulled back mainly because they worry about the end of the Federal Reserve’s policy of near-zero interest rates. Investors expect the central bank to raise rates sometime next year, and that means the value of bonds currently held in portfolios will fall.
“Like Stocks, Junk Bonds Show Investor Jitters” is categorized as “business”. This video was licensed from Grab Networks. For additional video content, click the “video” tab at the top of this page.