Yields in the U.S. high-yield bond market have fallen even as default rates have risen, suggesting conditions may be easing. "The high-yield market was very cheaply priced at the end of last year, even if one assumed that we were going to have an Armageddon-like default rate. A lot of investors recognized that through the first few months of the year," said Greg Hopper, portfolio manager at Artio Global Investors.

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