Moody's doesn't see corporate bond bubble.

 Don't panic, Moody's said in a report Friday, there's "no strong evidence that recent [corporate debt] issuance levels presage a damaging correction." The notion that a bubble is building in the corporate bond market isn't reflected in credit spreads which, for both investment grade (LQD) and high yield (HYG, JNK), are closer to long-run averages than they are to alarmingly tight. Furthermore, the ratings agency said a surge in issuance reflects the "disintermediation of the banking sector" and noted that the proportion of total corporate liabilities comprised of debt securities "hasn't significantly increased over the past two years." We can all rest easy now.