Strange New World – Investment Grade Assets Yields Higher Than Junk

Central banks have had a massive distorting effect on several asset classes, two analysts have told CNBC, with investment-grade fixed-income assets now yielding more than riskier “junk” debt.

“We’ve had buyers from our investment grade fund coming out of high yield because we’re actually yielding more,” Bryn Jones, head of fixed income at Rathbones told CNBC Wednesday.

Government bond yields have been suppressed in recent years thanks to the U.S. Federal Reserve’s massive bond-buying program which has boosted the price of Treasurys and, because of the inverse relation between the two, pushed yields lower.


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Mingze Wu

Mingze Wu

Currency Analyst at Market Pulse
Based in Singapore, Mingze Wu focuses on trading strategies and technical and fundamental analysis of major currency pairs. He has extensive trading experience across different asset classes and is well-versed in global market fundamentals. In addition to contributing articles to MarketPulseFX, Mingze centers on forex and macro-economic trends impacting the Asia Pacific region.
Mingze Wu