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U.S. junk bonds exhibit stress, investors want stronger terms

Reuters  |  NEW YORK 

By Kate DuguidNEW YORK (Reuters) - Cracks have been surfacing in the junk bond market. Returns on leading high-yield indexes are down and cash outflows are rising, as are short interest bets against the asset class. In addition, investor protections have shown signs of improvement, suggesting junk bond issuers are being forced to offer better terms to attract interest. "Valuations are, in aggregate, stretched," Greg Peters, senior portfolio manager at PGIM Fixed Income, which has $709 billion in assets, said on Monday. "We have definitely taken down our overall risk profile." Bargaining power ...

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First Published: Wed, March 14 2018. 00:03 IST