Corporate Bond Market Frothy’ness

Great post over at FT Alphaville today that talks about the crazy low yields in the corporate bond market. Since the GFC (Great Financial Crisis of 08) investors have been running scared and looking for safety in large numbers. This has caused corporate bond yields to hit new multi-year lows. Remember in Bond Math, when there is lots of demand, prices are high and consequently yields are low. The yeild is the interest rate that the company issuing the debt has to pay out. Lower the yield, better for the company.

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