Risk aversion may be the dominant characteristic in the government bond market this year, but there is little evidence of it in credit. By mid-September, new issuance of US high yield bonds totalled $168.5 billion, according to Dealogic, better than the previous full-year record of $163.3 billion set last year.
But the surge of supply has been well supported by an investor base searching for yield. The yield on the Credit Suisse HY index is 7.65%, compared with 8.71% at the end of 2009 and 18.9%
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