Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., July 13, 2021.
Brendan McDermid | Reuters
Junk bonds aren’t so junky anymore, with a strong fundamental backdrop helping to underpin what traditionally has been one of the riskiest sections of the financial markets.
Yields in the $10.6 trillion space for the lowest-grade bonds in terms of quality are around historic lows after a tumultuous year that saw corporate America face down the Covid-19 pandemic and come out on the other side with balance sheets looking extraordinarily strong.
Bond yields decline as prices rise; the two have an inverse relationship to each other.
Most recently, the junk bond sector…