Junk bond yields hit record lows.

 For the first time ever, the yield on junk bonds (HYG, JNK) has fallen below 5%. The Barclays U.S. Corporate High Yield index fell to 4.97% earlier this week, capping a more than 100 basis point compression YTD, as investors' insatiable appetite for income in a stingy ZIRP environment has fuelled robust demand for relatively riskier assets. Despite the sharp decline in yields, the spread to Treasurys is still well off historic lows at 4.06%.