The junk market has been struggling since earlier in the year as yields have been buffeted
by rising Treasury rates. Junk price indices have rallied recently on signs of a stronger
economy and hoped for better fixed charge coverage and could get some further play if
traders grow more confident that the Fed will resist curtailing its large QE program for
a while longer. However,the Bloomberg high yield index is sitting down around 6.50%
and is carrying a small premium to an array of investment grade bonds which can be had
to yield between 5 - 6%. That now smaller quality differential spread does not present junk
players with a favorable comparable risk / return profile for now. Bloomberg High Yield
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