Junk-Bond Sales Soar in U.S. as BofA Sees Bubble

Sales of junk bonds in the U.S. have already set a record for August, as yields at about record lows combined with a slowdown in earnings growth spark concern the market has peaked.

“It has become such a feeding frenzy,” said Bonnie Baha, who helps oversee $40 billion as head of global developed credit at DoubleLine Capital. “It’s almost like credit fundamentals don’t even matter in markets like this. You’ve got too many dollars chasing too few bonds.”

The $44.9 billion deposited in high-yield funds globally through Aug. 8, as measured by EPFR Global, compares with $14.3 billion in the same period last year.

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