Remember Lessons of '07 in Rush for Junk

It is a lesson that investors and policy makers should remember. Think, for a moment, about the corporate debt world. In recent weeks, the antics of the high-yield bond market has sparked a frenzy of investor debate. After all, the yield on high-yield bonds has recently tumbled to below 6 per cent, from nearly 16 per cent at the crisis peak, and issuance has surged dramatically.