On August 13 The Wall Street Journal had an article titled "J&J Sets a Yield Low."
From the story: "The health-care products firm sold 10-year bonds with an interest rate of 2.95%, or a risk premium of 0.43 percentage point over comparable Treasurys."
The story provides an overview of the strong market environment for both corporate and junk bonds.
My view is that the entire corporate bond market is in a bubble. This bubble is related to the bubble in U.S. Treasuries which I have previously commented upon.
SPX at 1092.54 as this post is written
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