Catch This Snap Higher
One of the unintended side effects of the Federal Reserve banking bailout was the boost given to shares of heavily leveraged companies. 2012 saw record-low borrowing rates, with yield-hungry investors soaking up new issues as long as their coupons were above Treasury-bond levels.
In all, low-quality, high-debt firms outperformed blue-chip names last year. Even junk-rated companies don't have to pay much when raising or refinancing debt, as the chart below shows....270 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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