Junk Bonds: The Numbers Are, "Frankly, Stunning"

by Brian Whitmer
Updated: October 13, 2020

Have you tried to get a car loan lately? If you live in the U.S., getting a 3% loan for 5 years is a pretty good deal.

Yet, Europe's peripheral nations like Greece, Italy, Portugal, Spain -- some, like Greece, with a long record of defaults -- are paying less than 1% to borrow money for 10 years.

How is that possible?

Exuberant investor optimism, that's how. That's why 2020 is shaping up to be a monster year for junk bond sales.

But all this investor optimism about buying low-grade debt is actually a dangerous sign. Our monthly Global Market Perspective contributor Brian Whitmer explains.

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