Bond buyers are getting exhausted after absorbing trillions ofdollars of corporate debt in the past few years.
While they still gobbled up a record-breaking $135 billion ofU.S. investment-grade bond sales in July, they're getting pickier.They're now demanding the most extra yield to own the debt insteadof government securities in two years.
“The high-grade bond market feels satiated with paper,” Bank ofAmerica Corp. analysts led by Hans Mikkelsen wrote in an Aug. 3report. “What this market needs is a break -– either in the form ofa slowdown in supply volumes or some healthy inflows.”
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