Enthusiasm for US corporate debt reaches pre-crisis high
Premiums for corporate borrowing close to lowest level since 2007
The extra yield demanded for investment grade US dollar corporate bonds versus US Treasuries has fallen to within two basis points of its post-crisis low, reports the Financial Times.
Junk bonds are hovering close to their 2014 low, while the spreads for triple-B and double-B rated bonds have already fallen below their post-crisis lows. US banks are also seeing lower spreads than since before the financial crisis.
The enthusiasm for bonds comes alongside record highs in the S&P 500 and the first new highs for blue-chip tech firms since the dotcom boom in 2000.