With bond sales figures for 2012 hitting $1.4 trillion, the bar has been set rather high for 2013.
And while the recent deals about the U.S. fiscal cliff and the Euro have infused some vigour in the market, investors are concerned this may mask the issue of inadequate supply of high-yielding assets, says a report in the Financial Times.
Some of the blame for this shortage has been placed on the shrinkage in European corporate bond issuance, banks’ reliance on central bank funding or reducing their balance sheets, and lower overall pent-up demand.
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