What Are The Technicals Saying About Junk Bonds?

The U.S. high-yield bond market rout of the past year has been one of the major sources of market volatility as investors justifiably fret about an upcoming wave of energy sector defaults. As I've been saying for a while, I believe that the U.S. high-yield or "junk" bond market experienced a Fed-driven bubble in the past seven years as record low interest rates encouraged investors to snap up higher yielding, but higher risk bonds. Many of these junk bonds were issued by speculative energy compa...