The yield on corporate bonds goes up for the fourth consecutive quarter that has not happened since 2004, cited by Bloomberg. Their return will be increased by 2.6 percentage points in the first quarter of this year after record profits by 16% in 2009. The increase was the largest since the U.S. bank Bank of America Merrill Lynch results statistics for return on corporate bonds. Rally of the debt markets worldwide to enhance the appearance of first signs of recovery in the economy. As a result, companies worldwide have issued debt for 730 million dollars in this quarter, which is 25% more than the same period of 2009 interest rates in the U.S. and many developed economies fell near zero a year ago, and this has led investors to seek riskier assets and bring them higher returns. In this week showed that sales of high-risk corporate bonds rose to a record 38.9 billion dollars within the first three months of the year. These are corporate debt securities rated below Baa3 by the system of Moody’s.
Continue Reading