The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

A trader looks at monitors at a dealing room in Tokyo October 24, 2008.
A trader looks at monitors at a dealing room in Tokyo October 24, 2008.
(Toru Hanai/Reuters)

SCOTT BARLOW

Fed can’t seem to push investors out of high-yield bonds

ROB Insight is a premium commentary product offering rapid analysis of business and economic news, corporate strategy and policy, published throughout the business day. Visit the ROB Insight homepage for analysis available only to subscribers.

We started the year by suggesting U.S. high-yield bond spreads were the key variable for investors as a mean of gauging whether assets would begin to flow in to equities. Despite decent returns from the S&P 500, however, corporate bond yields have continued lower, testing the previously unheard-of five per cent level. The alleged Great Rotation remains stuck in neutral.