Bond boom's future is uncertain as Fed withdraws from debt market

03/31/2010 | Wall Street Journal, The · Portfolio.com

As the Federal Reserve shut down its program of purchasing mortgage-backed bonds, traders wondered what force might come along to drive one of the greatest corporate-bond rallies in history a little further. Last month, $31.5 billion in high-yield debt was brought to the market, beating a record set in November 2006. Investors are debating whether the economy can sustain this level of bond-market activity with the central bank on the sidelines.

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Wall Street Journal, The · Portfolio.com