Early Cracks Form in Corporate Debt Markets as Rates Rise
- Corporate debt markets showing early signs of weakening as rising yields and falling equities take toll
- Risk premiums for investment-grade bonds at highest since June; some junk-bond issuers having trouble selling debt
- Selloff in Treasuries spilling over into corporate credit; 10-year Treasury yield neared 5% this week
- While volatility persists, higher rates creating opportunities for long-term investors in fixed income
- Amount of maturing junk bonds in next 1-3 years at highest level since 2007
