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Hi rk,

Investors in low quality junk bonds are demanding 2.85 percentage points in additional yield over safer investment grade corporate bonds. This spread is much lower than what has been typical during the last two years and indicates that investors are pursuing higher risk strategies.

Wow, that's an interesting statistic for junk bonds. Less than 3% risk premium. Not very much compared to historical norms which, iirc, is around 6 to 8%.

Distortions abound.

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