SINGAPORE: Warning signs are starting to flash in US credit markets, according to Cantor fitzgerald LP.
Companies sold around US$13bil of junk bonds last week, the most in more than two years, according to data compiled by Bloomberg. Risk premiums for the securities have dropped more than 1.5 percentage points this year on average, and investors aren’t getting paid much more to buy junk bonds instead of investment-grade, by some measures.
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