U.S. corporate bond market heats up, but some expect slower 2014

U.S. corporate bonds are selling at the smallest interest-rate premium to comparable government bonds since 2007, with investors piling in as the economic outlook brightens. In addition, junk-rated bonds are on track to top last year's sales record. However, some analysts say rising interest rates will cool the market in the new year. "As we go into 2014, the opportunity for some of these companies to keep issuing debt at very attractive rates is diminishing," says Dan Heckman, a senior fixed-income strategist at U.S. Bank Wealth Management.

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