Have financial markets lost the plot? Bubbles are supposedly everywhere, most notably in bonds. But one prominent case of financial froth has an explanation all its own. In an unprecedented development, a key European junk-bond index yields less than 10-year U.S. Treasurys, the global benchmark for risk. It’s worth looking a little closer at this apparent through-the-looking-glass moment.

Source: Wall Street Journal October 05, 2017 13:01 UTC