Yields on US junk bonds have jumped to almost 8.6 per cent from a mid-August low of 7.4 per cent
The rise reflects a significant decline in the price of the debt.
Investors have raced out of funds that buy junk-rated US corporate bonds, with $8.7bn withdrawn from accounts over the past two weeks
Traders now expect the Fed to lift rates to nearly 4 per cent by early next year, up from between 2.25 and 2.5 per cent today.
FT 3 August 2022
Corporate junk bonds in the US...
Jonathan Levin Bloomberg 30 augusti 2022