Super-Junk Leads The 2019 Asset Revival

Authored by Mike Shedlock via MishTalk,

The stock market is unlikely to crack until speculation in junk bonds gets blown out of the water.

The high-yield index hit record highs on Powell's dovish Fed outlook. The lowest-rated debt has led the charge with 6% returns this year.

Bloomberg reports Junk Bonds Rage as Clear Channel Sells Biggest CCC in Months.

High-yield debt has already proven to be one of the best-performing asset classes in fixed income this year, led by CCC rated bonds that have so far returned just over 6 percent, Bloomberg Barclays index data show.

Junk bonds and speculative risk taking go hand in hand with stock market gains. With that thought, let's discuss take a look at bond ratings to see what's delivering the gains.

CCC Debt Leads the Revival

CCC rated "garbage" one or two steps above "default imminent" is leading the rally.

What's Powell going to do for an encore? Buy junk bonds?