Joseph Ciolli at Bloomberg writes December 15, 2015:
Bill Gross says the selloff in junk bonds is starting to make them look cheap compared with stocks. Going by one widely followed measure, it’s true.
Amid an almost 6 percent selloff in high-yield debt this year, speculative-grade credit is yielding 3.52 percentage points more than stocks in the Standard & Poor’s 500 Index are earning -- the widest spread since 2010, according to data compiled by Bloomberg. Since the start of the 6 1/2-year bull market, junk securities have held an advantage of less than half that -- 1.36 percent -- over equity counterparts, the data show.
Read more here.
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