00:00It's Benzinga, bringing Wall Street to Main Street.
00:02Cracks are emerging in the junk bond market, as investors demand higher yields to hold
00:07riskier corporate debt, according to CNBC.
00:09High-yield bond yields have climbed to 8.1 percent from 7.2 2 percent a month ago, while
00:16credit spreads have widened to 315 basis points.
00:19The lowest-rated bonds have seen the sharpest increase, with spreads reaching roughly 1,250
00:24basis points.
00:25State Street investment management strategist Michael Arone described the market as flashing
00:30yellow but far from red.
00:32Analysts say the broader market remains healthy, with BB-rated bonds accounting for more than
00:3760 percent of high-yield debt.
00:38Analysts say investors should watch for widening credit spreads among stronger corporate borrowers
00:43as a potential sign of rising risks.
00:45For all things money, visit Benzinga.com.
