Investors warn of ‘complacency’ over junk bond risks

Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.The junk bond market has become “complacent” over the risks facing corporate America after a sharp drop in debt funding costs, some investors and economists warn, with high interest rates and a possible economic downturn still posing a threat to low-grade, highly indebted borrowers. A feverish rally across financial markets on hopes of rapid interest rate cuts later..