What Junk Indicates

The revival is noteworthy because the junk-bond market is widely watched for clues about the state of the U.S. economy. Companies issuing junk debt have less financial flexibility to weather a downturn than higher-rated firms, often making the performance of their bonds an indicator of broader economic health.

Cherney, Mike and Goldfarb, Sam. "Junk-Bond Rebound Signals Easing Fear," The Wall Street Journal., Tuesday, March 8, 2016, A1, Accessed on March 8, 2016, http://www.wsj.com/articles/junk-bond-rebound-signals-easing-fear-1457395260