Fed-fuelled frenzy sends US junk bonds to new record

Thanks to the Fed stimulus, US high yield had a ball in 2012. Issuance rose to a new record, as borrowers took advantage of all-time low yields. Competition for paper was high, as more and more cash flowed into funds. Meanwhile, the leveraged loan market also welcomed plenty of new cash thanks to $40bn of new CLOs, writes Stefanie Linhardt.