Like Stocks, Junk Bonds Show Investor Jitters

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Like Stocks, Junk Bonds Show Investor Jitters

by Wochit 0:39 mins

Like Stocks, Junk Bonds Show Investor Jitters

by Wochit 0:39 mins

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.

Wochit

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