Thornburg Investment Management Portfolio Manager, Christian Hoffmann in Chief Investment Officer

Despite Fed Backstop, Junk Bonds Still Face Big Trouble

The central bank’s much-touted help for high-yield is skimpy, in light of what nastiness lies ahead.

Hallelujah. Deliverance. Junk bonds were spiraling into the abyss until late March, then the Federal Reserve created a backstop for them that ended the nightmare. The bonds’ prices improved markedly. New junk issues over the past few weeks are again hugely popular with investors.
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