Stock Market Crash and High Yield Debt

Since late 2008, the unprecedented quantitative easing (QE) that flooded our economy has produced another terrible consequence — the unbelievable mispricing of high-risk, high-yield bonds.
At the top of the previous boom in early 2008 high yield bonds grew to $710 billion and were yielding 10% after dropping to as low as 7.5% in early 2007.
That’s a more appropriate yield for investors taking such risks in what back then still looked like a good economy.