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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