Bank America Corp. and Asset Class

: The pullback is slowing what had been a record pace of issuance, with sales of the securities poised for the slowest week this year, according to Bloomberg. There are a number of reasons to be cautious, Michael Contopoulos, head of high-yield and leveraged-loan strategy at Bank of America Corp. in New York, said via telephone. The two-month jump in government bond yields worldwide is starting to catch up with speculative-grade company debt. The low global yields and low volatility that helped the asset class earlier in the year are disappearing, and fundamentals in the asset class aren’t very strong. Speculative-grade companies also face low earnings, with negligible growth in the past two quarters, even after stripping out energy companies plagued by falling oil prices, according to Bank of America. With the Federal Reserve getting closer to raising interest rates for the first time since 2006, borrowing costs in the junk bond market have risen to a five-month high. (news.financializer.com). As reported in the news.