Returns on U.S. investment-grade corporate bonds are pulling ahead of junk-rated debt as credit investors turn to borrowers likely to weather a slowing economy
Investment-grade bonds are up 9.7 percent this year, topping the 8.5 percent for junk notes, the widest gap since credit markets seized up in 2008.
Yields on investment-grade bonds average about 4.71 percentage points less than junk, compared with 3.76 percentage points in April, showing that investors perceive less risk to owning the debt.
Disposable incomes, or the money left over after taxes, dropped for the first time since January after adjusting for inflation.
