The $1 trillion bubble is a totally new phenomenon

Junk bonds are living up to their name right now.

As we have noted in the past, the lowest-rated junk bonds may have inflated a $1 trillion bubble at the bottom of the debt market. The thing is, it never should have gotten that way.

Kathy Jones, the chief fixed-income strategist at Charles Schwab, said today's level of low-rated debt issuance (CCC-rated and below) would never have happened in the past.

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