Need to understand how a leap in rates of interest subsequent yr might hit markets in sudden methods? Take a look at the latest selloff in junk bonds.
The downturn started in early November when new inflation information stoked fears of interest-rate will increase, then accelerated when the Omicron coronavirus variant shook inventory markets. Whereas costs of the below-investment-grade company bonds stabilized final week, buyers continued to tug money from funds that purchase the debt.