2014.10.2013:50:00UTC+00Bubble in US High-Yield Corporate Bonds Appears to be Deflating

Quotes from Capital Economics:
- The bubble in US high-yield corporate bonds appears to have partially deflated since the summer. But we expect it to let out some more air over the next year or two. 
- Fed tightening is most likely to affect high-yielding corporate bonds via the impact it has on underlying Treasury yields. These are much lower today than they were at the outset of any of the three previous major tightening cycles. 
- Our view is that the 10-year Treasury yield will rise from around 2.2% now to 3.75% by the end of next year.